U.S. Stone Imports 2007: Going Down

GRANITE

The estimates from mid-year 2007 data pointed to a flat performance on granite value with U.S. imports, along with a drop-off in volume. And that’s what happened.

Imports of all granite total $1.51 billion in 2007, down 2.3 percent from the previous year. As usual, granite’s Big Four – Brazil, China, India and Italy – dominate the trade, accounting for 90.8 percent of imports. Brazil made the biggest impact; with $560.3 million, the country tallies more than one-third of all imported granite value in 2007.

The dimensional-stone industry in the United States uses worked granite – material that’s been finished from quarried boulder into slab or tile format – and the $1.50 billion brought into the country last year marks a 2.2-percent decrease from 2006. (The Big Four countries again capture more than 90 percent of the worked-granite imports.)

The big change in the worked-granite import market came with volume; the 2,253,320 metric tons coming into the United States last year represent a 14.5-percent decline from 2006. Brazil closely tracked the trend, with its 840,139 metric tons in 2007 marking a 14.8-percent drop; India’s 429,014 metric tons show a 30-percent slide from 2006.

The decline wasn’t as severe for the other large traders; China’s worked-granite imports drops 8.6 percent from 2006, while Italy seemed relatively unchanged with only a 1.1-percent decline.

The wide gap in the 2006-2007 worked-granite markets shows the volatility caused by the weak U.S. dollar, especially when it comes to average price per metric ton. Brazil’s $665.51 in 2007 is 20.9-percent higher than the previous year, while India’s $499.74 represents a 33-perecent rise from 2006. China’s $650.91, meanwhile, meant an 18.3-percent rise in 2007.

And Italy? While the $846.55 average per metric ton for worked granite in 2007 ranks far higher than the other major granite importers, it’s also 11.7-percent less than the country’s 2006 average. Add in the increases in the value of the euro, and some of Italy’s stone factories may be showing an indication of a possible trend in 2008 imports: to keep material moving, some exporters will cut prices and make less margin to keep U.S. buyers … well, buying.

MARBLE

The mid-year estimate called for 2007 marble imports to increase in value and volume, creating the one bright spot in U.S. dimensional stone. The year-end data didn’t take any shine off that prediction.

The value of all marble coming into the United States last year came to $640.3 million, or 14.6-percent ahead of 2006. Unlike granite, only half of the marble arriving here is worked … but the semi-finished material also did well.

Worked-marble import values in 2007 totaled $318.6 million, up 19.2 percent from the previous year. As in past years, Italy led the way with $135.6 million, posting a 12.4-percent gain from 2006.