Israel’s Polished Diamond Exports Fall 11.8% in 2008

Israel’s net polished diamond exports fell 11.8 percent to $6.24 billion, according to partial figures released Sunday by the Ministry of Industry, Trade & Labor. Polished diamond imports in 2008 totaled $4.381 billion, a 3.9 percent year-over-year decline, concluding a turbulent year of trading.

The figures do not specify trade in December. Trade in November was not reported either. However, based on previously published data on the January-October trade, Israel exported only $428 million worth of polished diamonds in November and December. In the first ten months of the year, net exports reached $5.812 billion. This compares with $1.129 billion in November-December 2007, a 62.1 percent decline.

By the same count, combined net polished diamond imports in the last two months of the year were $594 million, compared to $1.038 billion in 2007, a 42.8 percent fall.

The ministry did not release data on the volume of trade.

The Israeli diamond industry started the year strong, with robust trade and rising prices. However, the situation started to change in the summer, only to get hit by the economic crisis in the U.S. just prior to the all important holiday season.

“We expected the slowdown early on and prepared for it as soon as the [global economic] crisis started,” Israel Diamond Exchange President Avi Paz, said in a release. “We are working in all directions to ensure the industry passes this period in the best possible way. I foresee several more tough months before we see a positive turnaround,” he added.
 

Israel’s main export destinations in 2008 were the U.S. ($2.689 billion, 43% of exports), Hong Kong ($1.422 billion, 23%), Belgium ($545 million, 9%) and Switzerland ($484 million, 8%).