Jewellery imports to Japan during the first quarter of 2004 increased by 11 per cent compared with the same period last year, new figures released by the Jewelry Trade Center have shown.

The increase was driven by strong demand for platinum pieces, imports of which rose by 25 per cent to US$67.4 million, up from US$53.8 million in the first quarter of 2003.

The return to popularity of platinum in Japan follows a 15 per cent drop in purchases of platinum for jewellery manufacture in the country last year to the lowest levels recorded since the mid-1980s.

According to Jewellery News Asia, Asian manufacturers have attributed the increasing Japanese demand to improving economic conditions and the growing strength of the yen against the dollar.

Many suppliers also predicted the Japanese market would expand further. Rehan Sahikh, manager of J.B. Jewelry, stated: "We forecast a sales increase of about 40 per cent in this market for the year. The weak US dollar is an incentive to importers.

"With the continuing economic recovery, the market should also continue to improve."