Israel Polished Diamond Exports $450 Million in September

Positive signs of revival for Israel's diamond trade

Israel’s net polished diamond exports of $449.94 million in September declined 33.5 percent compared to September 2008. In volume, net exports totaled 247,792 carats, an average of $1,815.81 per carat, according to the Diamond Controller’s office in the Israeli Ministry of Trade, Industry and Labor.

Israel suffered a harsh decline in diamond trade at the onset of the global economic crisis last year. One of the reactions to the crisis by the Diamond Controller's Office was to stop reporting monthly trade figures. Reports were reduced to quarterly figures. The last report by the Diamond Controller’s office in the Ministry of Trade, Industry and Labor was in July.

Net polished diamond exports in the first three quarters totaled $2.6 billion on shipments of 1.65 million carats, averaging $1,573.42 p/c, indicating a certain revival in prices; however, it more likely reflects an increased focus on trade in higher-end goods. Prices of polished have been largely flat in the past months, according to the IDEX Online Polished Diamond Index.

Some 210,716 carats worth $256.7 million were imported in September, a 17.6 percent decline in volume and 39.2 percent decline in value. The average value of imports was $1,218.25 p/c.

Imports in the nine-month period of 1.42 million carats worth $1.53 billon were a 40.5 percent and 56.5 percent respective decline compared to the January-September period of 2009.

According to Diamond Controller Shmuel Mordechai, while diamond trade is improving monthly, it may take a number of years before they return to the trade level seen in 2007/8.

The U.S. continued to be Israel’s main export destination in the nine-month period, accepting 50 percent of exports - $ 970.57 million. Hong Kong followed with $757.25 million worth of goods.

In September, Israel exported to Hong Kong $240.15 million worth of goods, mainly for the Hong Kong trade show.