Israeli ’05 Polished Exports Rise 5.8%

Net exports of polished diamonds from Israel in 2005 was $6.707 billion, increasing 5.8 percent in value from $6.337 billion in 2004. According to the heads of the Israeli diamond industry, 2005 was a record year for the industry in all parameters.

Import of polished diamonds during the year netted $3.897 billion, up 3.2 percent from $5.151 billion the year before.

During a press conference this morning in Ramat Gan, diamond controller Shmuel Mordechai said rough diamond exports rose 20.5 percent to $3.517 billion from $2.92 billion. At the same time, rough diamond imports increased 3.2 percent to $5.318 billion.

The increase in net rough diamond imports comes against a decrease in supply to Israel by De Beers' marketing arm The Diamond Trading Company (DTC). While exact numbers were not made available, DTC supply in 2004 made up 21 percent of total rough imports and 18 percent of total supply this past year – an estimated $957.24 million.

According to Israel’s Manufacturers Association chairman and DTC Sightholder Moti Gantz, some of the DTC supply to Israeli Sightholders is not shipped to Israel.

Israel exported , 61 percent of its goods, to the U.S., its main polished exports destination, down from 67 percent in 2004. According to Israel Diamond Exchange (IDE) CEO Yair Cohen – this is good news. While the Israeli industry is diversifying its clients – exports to Hong Kong increased greatly – the value of exports to the U.S. still increased, rising to $7.773 billion (gross) from $7.039 billion in 2004.

Jewelry exports in 2005 totaled $380 million. Compared to 2004, silver and fashion jewelry exports increased 50 percent, the diamond controller’s office reported.