Import Trends: Mid-Year 2004

   The January-June import data for granite, marble, travertine and other dimensional stone indicate that yet more material is coming into the country, denoting continued growth for the overall U.S. stone market. And, the perennial leader – Italy – still holds a strong position.
   As containers of stone flow through U.S. ports of entry, though, the increase in volume continues to outstrip the declared value of the stone; the more that comes on the dock, the cheaper it gets. And that strengthens the positions of value-price challengers such as Brazil, China and Turkey.
   The following data comes from the U.S. Department of Commerce, the U.S. Treasury and the U.S. International Trade Commission (USITC), representing stone imports for the first six months of 2004 and, for comparison, the same time frame in 2003. (Totals are rounded off in some categories.)
   
GRANITE
   Granite’s strong showing overall in 2003 gives no signs of abating this year. In the first half (1H) of 2004, overall granite imports are $436.7 million, or 32.5-percent more than the first six months of 2003. Italy leads the field with an import value of  $135.6 million, with an increase of 18.2 percent from 1H2003. Brazil, meanwhile, shows an increase of 34.1 percent from last year’s first half with $101.9 million; India’s $71 million represents a 45.7-percent increase from January-June 2003.
   China’s $57.4 million in overall U.S. granite imports takes fourth place in 1H2004. However, that’s 70.7-percent more than last year’s first six months.
   The lineup stays the same when narrowing the imports to granite slabs/cut stone; Italy remains first at $134.5 million, followed by Brazil at $101 million, India at $71 million and China at $57.1 million. These four countries control most of the processed granite coming into this country; between them, they make up 84.5 percent of the $431 million in imports for the first half of this year.
   When it comes to volume, however, the order changes significantly. Brazil becomes the leader for 1H2004, with its 231,385 metric tons representing a 39.5-percent increase from 1H2003. India takes second, with its 195,517 metric tons denoting a 28-percent rise from the first six months of last year.
   Italy, when it comes to actual amounts of processed granite shipped into this country, ranks third in 1H2004 with 167,120 metric tons. Its increase of 8.9 percent from the same time last year is literally a world away from China’s growth; while Chinese processed granite totals for this year’s first half is 118,847 tons, that’s a 131.3-percent jump from 1H2003.
   That volume growth seems to back the assumption that China’s slab/processed granite would also be the least-expensive among U.S. imports in 1H 2004 – except that it’s the wrong conclusion. India’s processed granite, when comparing import values to actual tonnage at the docks, is the value leader among the top four at $363 per metric ton. Brazil is second least-expensive at $436.
   China, meanwhile, is the second-most-expensive among granite’s Big Four at $480 per metric ton. Italy commands top value among the leaders at $805 per metric ton.
  
MARBLE
   Comparing U.S. import numbers for marble with export data from other countries can be confusing. International data – including that from Italy – doesn’t seem jive. There’s a very good reason: It’s all mixed up.
   International numbers (as well as the export officials of many countries) often combine marble with travertine. U.S. figures, however, clearly separate marble from travertine in every significant category, and that division gives a clearer picture of the use of both stones.
   Overall values of U.S. marble imports in 1H 2004 show continued growth – although not as manic as granite – with the $169.2 million representing a 20.8 percent increase from first-half 2003. Italy continues its lead in overall marble values, with imports of $74 million in 1H 2004 noting a 17.7 percent increase from 1H 2003. Spain is second overall, with $20.6 million representing a 15.8-percent rise from first-half 2003.
   China ($18.3 million) bumps Turkey ($16.3 million) in 1H overall marble imports. And, while Turkey increased its marble imports by 32.1 percent from first-half 2003, China stepped up in value by 72.7 percent.
   In cut-stone/slab marble imports, Italy also places first with $36.7 million in value for first-half 2004, and an increase of 30.2 percent from the first six months of last year. Italy managed to dominate processed marble value – its imports are 53.8 of all the value of cut-stone/slab marble brought into the United States.
   Spain, meanwhile, trails far behind in second with $8.5 million in 1H 2004 processed-marble value, although that represents a 65.3-percent increase from the same time in 2003. China is third at $5.4 million (with a 132.2-percent growth rate from mid-year 2003), and Turkey grew the value of  its cut-stone/slab marble imports by 48.8 percent to $3.4 million.
   Italy’s 29,268 metric tons of cut-stone/slab marble in 1H 2004 easily led the field; in fact, it’s more than the total metric tons of the next four leading importers (Spain, 10,999; China, 10,514; Turkey, 4,610;  and Egypt, 2,867).
   Italy also continues to receive top dollar for its cut-stone slab marble, with an average per-metric-ton value of $1,257.26 in the first six months of this year. Spain, meanwhile, averages $780.07; Turkey, $752.97; Egypt, $561; and China, $518.07.
  
TRAVERTINE
   Turkey continues to dominate the U.S. import market for travertine. Of the $158.5 million in import value of the stone brought into this country in 1H 2004, Turkey accounts for $86.5 million, or 54.5 percent.
   The $86.5 million in U.S. imports of Turkish travertine in this year’s first half also shows a 40.6-percent increase from the same time in 2003. Second-place Mexico’s $37 million represents an 18.7-percent increase, while Italy marks a 18.1-percent decrease from first-half 2003 with $21.6 million. Peru is a distant fourth in 1H 2004 travertine U.S. imports with $6.3 million, but that also represents a 35.8-percent increase from January-June 2003.
   It’s almost hard to find anything but travertine from Turkey when it comes to volume; the 184,565 metric tons received in U.S. ports accounts for 65.6 percent of all travertine imported. Turkey also betters its 1H 2003 import volume by 50.4 percent; Mexico’s 39,477 metric tons shows a 15-percent increase. Peru made a significant increase from 1H 2003 – 187 percent – with its 16,594 metric tons.
   Italy, meanwhile, offers a near-mirror image of the market leader; its 27,908 metric tons in 1H 2004 reveals a 46.8-percent drop from the same time last year.
   In value-per-metric-ton, Mexico tops the leaders in travertine imports for 1H 2004 at $938.84, easily outdistancing Italy’s $776.64. Turkey’s high volume contributes to its metric-ton average of $460.97, while Peru offers the greatest value at $385.62.
  
THE REST
   Other calcareous stone – including limestone and alabaster – remains Italy’s turf in 1H 2004, but only barely. The $31.3 million in U.S. imports from Italy edged Spain’s $30.2 million; China, with $11.6 million, edged the $10.1 million from France. The top four countries in imports of other calcareous show growth rates in value of at least 10 percent, although China easily outpaced the other leaders with a 55.2-percent increase.
   In the classification of “other stone” (such as sandstone), Italy saw the total values of its U.S. import market decline by 17.2 percent – but manages to lead in 1H 2004 with $23.7 million. India is second at $20 million, followed by Brazil ($15.6 million), Canada ($14.3 million) and China ($9.7 million).
   India and China remain the major players in slate, with U.S. import values of $17.9 million and $13.3 million, respectively, for the first six months of this year. The two leaders account for 73.4 percent of the value of all 1H 2004 slate imports; Brazil’s $4.7 million is a distant third place, followed by Italy in fourth at $3.8 million.
  
MID-YEAR MUSINGS
   • While granite continues to roll into the United States at a record pace, average prices per-metric-ton continue to drop. The top four (Brazil, China, India and Italy) all saw prices decrease; Italy’s average dropped the least from the end of last year ($817 to $805), while Brazil took the biggest slide ($530 to $436).
   • Italy continues to suffer from the Euro’s high exchange rate with the U.S. dollar, but marble imports are showing double-digit growth in volume and value. Other competitors are bringing granite into the United States faster, but Italy still leads in overall value and gets the highest price.
   • China’s granite imports get the most attention in the U.S. market, but its growth in  marble is sizzling. With cut-stone/slab shipments growing by 130-plus percent from mid-year 2004 to this year’s first half, it’s supplanting Spain as the second-largest source for marble.
   • Peru is a surprise in 1H 2004 in the travertine market. While Turkey is the giant in travertine territory, imports of the Peruvian varieties in this year’s first six months already tops the full-year total from 2003.
   Data for this article, and for accompanying charts, is derived from information reported by the U.S. Department of Commerce, the U.S. Treasury and the U.S. International Trade Commission. All analysis is made using comparable data. “Cut stone/slab” data excludes crude/roughly trimmed stone comprised of marble/travertine, granite or other categories where volume measurement is in cubic meters instead of metric tons. Data from the categories of “marble/travertine crude/roughly trimmed stone” is not included in value summaries, since the two stones are not delineated in the Harmonized Tariff Schedule of the United States (2002) (Revision 2).