Israel’s Polished Diamond Exports Shift Away from U.S.
February 03, 08 by Edahn Golan
Israel exported $754 million worth of polished diamonds in January, a 3.3 percent increase in exports over January 2007 when exports reached $730 million. While the majority of exports continued to be shipped to the U.S., a sharp decline meant that U.S. exports represented approximately 41 percent of total exports, down from about 50 percent in the past.
Hong Kong is fast becoming Israel’s fastest growing market for polished diamonds. The country sent 26 percent of its goods, or about $196 million in value, to Hong Kong, a 56 percent rise in exports over last year.
Belgium was Israel’s third largest destination, receiving 13 percent of net exports, a 64 percent year-over-year rise.
The recent holiday season was not very successful in the U.S. for diamond jewelry. According to estimates, sales rose 3.5 percent in value from 2006; however, the U.S. suffered from a 4.5 percent inflation rate. Diamond jewelry has also lost market share within the luxury segment in the U.S., further hurting the diamond industry.
As a result, Israeli diamond traders are increasing their efforts in growing markets such as China and Hong Kong, as well as focusing more on supplying online retailers such as Blue Nile and James Allen.
Israel’s net imports of polished diamonds declined in January 2.8 percent to $278 million.
