Israeli Polished Diamond Exports Fall Sharply in June

Polished diamond exports from Israel fell 22.5 percent in value and 18.9 percent in volume, according to figures released this morning by the Israeli Ministry of Industry, Trade, and Labor. The decrease occurred across the board in the import and export of both polished and rough diamonds.

Israel exported 231,988 carats of polished diamonds worth $314,340,847, an average per carat value of $1355. During the first half of the year, exports declined 12.3 percent in volume to 2,057,883 carats, while the value of exports declined 3.8 percent to $3,361,570,126 – a $1633.51 per carat value.

Polished diamond exports naturally declined too. The center imported 298,529.85 carats worth $323,307,221, a decline of 4.9 percent in volume and 5.9 percent in value.

One surprise from the unusual month of trading was the jump in exports to Hong Kong, which took the lead from U.S. as the top destination for Israeli polished exports. The export jump was possibly due to the show that was held in Hong Kong in June.

Exports to Hong Kong totaled $108,909,495; followed by exports of $88,380,044 to U.S. Exports polished diamonds to Belgium in June totaled $34,046,888.

Rough Diamond Trade

The value of rough diamond imports dropped by over a quarter in June, totaling $392,930,363 – a drop of 26.7 percent compared to June 2005. In terms of weight, the decline is even more significant, falling 38.4 percent to $1,146,405.35 ($342.75 per carat), indicating perhaps that as trade shrunk, Israeli manufacturers switched to better quality goods.

Rough diamond exports of 839,882.79 carats, worth $195,058,155 in June ($232.25 per carat) equaled a 66.9 percent fall in caratge and 47.7 percent in value.

According to traders in the market, many diamond dealers are holding big stocks of rough diamonds, as are many U.S. buyers. While many are expecting a reduction of rough diamond prices, the biggest issue might be a shortage of cash.

One trader told IDEX Online that the hottest item is 10+ carats that sell at $4,000 as the shortage of this item continues. Unfortunately, these kind of items represent only a small fraction of the total trade.