Israel Rough Diamonds Revived in Dec After a Difficult Year

The roller coaster ride that embodied Israel’s rough diamond trading during 2009 ended at a peak in December. After sinking more than 76 percent in the first quarter of the year, Israel's imports and exports more than doubled year-over-year in the last month of 2009.

Israel imported 1.74 million carats worth $346.46 million in December 2009, an 84.8 percent rise in volume and 92.6 percent increase in value, according to figures released by the Diamond Controller at the Ministry of Industry, Trade and Labor.

Rough diamond exports in December shot up 509.5 percent to 1.37 million carats, rising 264.3 percent in value to $175.96 million.

The annual figures are less than celebratory. Israel imported 12.81 million carats of rough diamonds at $2.5 billion, declining 12.8 percent and 44.2 percent, respectively.

Exports of 13.69 million carats worth $1.89 billion declined 9 percent by volume and 42.9 percent in value.

The stark difference between the modest decline in volume and sharp fall in prices reflects the deep drop in the price of rough diamonds.

These prices have been on an upswing throughout the second half of 2009, with some of the trade done on a speculative basis. In December, a number of rough diamond traders were stocking up on goods with the belief that prices would continue to rally in January.