Israel’s Rough Diamond Trade Sinks +70% in Q1

Net import and exports of rough diamonds by Israel took a nosedive in the first three months of 2009, as demand for polished goods was weak, bringing polishing activities to a near halt.

Net rough diamond imports in the first quarter of 2009 fell 78.9 percent to $278 million. In the first three months of 2008 Israel imported $1.318 billion worth of rough, according to the Ministry of Industry, Trade and Labor’s Diamond Controller’s office.

In January, Israel imported $101 million worth of rough diamonds, in February $80.9 million and in March $96.1 million.

Rough diamond exports in the January-March period totaled $318 million, compared with $1.093 billion in 2008, a 70.9 percent decline.

The drop in supply has dried up the glut in rough diamonds and, according to a number of reports, prices have stabilized. The Diamond Trading Company (DTC) is holding its Sight of this week, the third this year. Some dealers are interested in making large purchases, perhaps expecting a near term recovery.