Israeli Rough Imports, Exports Surge, But Drop in P/C Value

Israeli imports and exports of rough diamonds continue their meteoric climb with strong activity in July. Interestingly, the climb in weight is out pacing the climb in value, possibly indicating that the Israeli market is shifting its business to lower quality goods.

The Israeli center imported 3.193 million carats valued at $532 million, an increase of 78.9 percent in weight over last June, but an increase of only 31.9 percent in value.

Considering the constant rise in rough diamond prices, one would expect the trend to be the other way around, an increase in imports will result in an even greater increase in price. With an average price per carat of $166 compared with $226 during June of last year, no doubt lower valued goods are entering the country.

One possible explanation to the shift is that Israeli manufacturers are moving to lower quality goods. But talk in the market gives rise to another explanation: an Israeli trader, possibly two, brought into the country an enormous amount of very cheap goods.

If that is the case, that would also explain rough export figures last month: 2.846 million carats worth $266,276,251 - a leap of 87.3 percent in weight and 38 percent in value, with an average price per carat of $93.56.

Like polished diamonds, January to June figures are showing an increase in Israeli trade. Net imports of $2.976 billion are a 38.7 percent increase over the same period last year, importing over 18.546 million carats – a leap of 97.9 percent over the prior year.

Rough exports during the period stood at 19.693 million carats worth $1.799 billion, surging 129.3 percent and 44.2 percent respectively.