Israel Q2 Rough Diamond Trade Low, but Starting to Pickup

Israel’s rough diamond trade sank sharply in the first half of 2009. Net rough diamond exports totaled $797 million, falling 63.4 percent from the $2.175 billion exported in the first six months of 2008, according to data published by the Diamond Controllers office in the Ministry of Trade, Industry and Labor.

In April, the ministry reported that rough diamond exports in the January-March period totaled $318 million, compared with $1.093 billion in 2008, a 70.9 percent decline. Deducting this amount from the value of exports in the six months period shows that in the second quarter Israel exported $479 million worth of goods.

Net rough diamond imports in the January-June period totaled $853 million, declining 69.2 percent compared to the $2.771 billion. Without first quarter imports, when Israel imported a net of $278 million, second quarter imports were $575 million.

The decline in imports may reflect the near halt in rough diamond sales by the Diamond Trading Company (DTC), Alrosa and other diamond producers. The rise in second quarter trade reflects the global revival the rough diamond segment of the industry is seeing. Third quarter figures are likely to show an even greater level of trade.

According to Diamond Controller Shmuel Mordechai, the sharp decline in trade is an outcome of the global economic woes. He noted, however, a certain pickup in exports in all diamond categories.

Israel is mainly a trading center, importing rough diamonds, sorting them and then exports to the manufacturing centers, mainly in India and China.