Israel Takes a Blow, Polished Diamond Exports Fall 37% in 2009

2009 was a tough year for the global diamond industry. Imports and exports by the world’s diamond centers were far less than in previous years, according to official figures. However, in Israel, such figures were not made public in an attempt to not “depress” traders, an official at the Diamond Controller told IDEX Online. With the release of the annual figures on Sunday, it is now clear - it was a very depressed year.

Net polished diamond exports fell 37.1 percent to just $3.92 billion. Israel exported 2.5 million carats of polished diamonds in 2009, a 19.5 percent drop from 2008. The average annual value of exports stood at $1,567.64 per carat.

Polished diamonds imports reached $2.51 billion (-42.5%), bringing in 2.12 million carats (-30.2%) at an average value of $1,183.01 p/c, giving traders an average margin of 32.5 percent.

The gloomy figures should not overshadow the increase in trade witnessed in December. Polished diamond exports bounced 166.2 percent to $308.24 million on exports of 205,546 carats, a 60.4 percent leap compared to December 2008. The average value of exported goods in December stood at $1,499.60 p/c.

Imports in December were nearly in line with imports in December 2008, but with one twist. If the figures published by the Diamond Controller are correct, imports far exceeded exports, generating an overhang in the trading center. Further, it may reflect a certain sense of optimism. Israel imported 249,200 carats (-1.5%) worth $349.42 million (3.3%) and averaging $1,402.17 p/c.

Exports to the U.S. in 2009 fell 42.2 percent to $1.56 billion, exports to Hong Kong declined 26.6 percent to $1.04 billion, shipments to Belgium plummeted 47.1 percent to $288.23 million while exports to Switzerland decreased 41.2 percent to $284.16 million. Exports to India, Israel’s fifth largest destination, were stable, shrinking just 3.4 percent to $122.34 million.