Israeli Polished Diamond Exports Keep Sliding

Net exports of polished diamonds from Israel fell to $493 million in September. The fall represents a 29.9 percent decline from the $704 million exported in September 2005. For six out of the past 10 months, there has been a decline in polished exports from Israel.

Polished exports from the country are, on average, on a continues decline, loosing since January 5.3 percent in value compared to January – September 2005.

Since the start of the year, Israel has exported $4.936 billion worth of polished diamonds (net exports), compared to $5.214 billion during the comparable period in 2005. The latest decline comes just ahead of the important holiday season.

In August, exports jumped 15.7 percent. The August jump, followed by the September decline, could indicate a certain shift in the timing of shipments, something that might be characteristic of a move in the dates of an important industry show. That, however, was not the case, as the Hong Kong jewelry show in September took place late in the month.

Exports to some of the main Israeli destinations have lost their luster. Exports to the U.S. – 51 percent of exports – softened 7 percent. Exports to Belgium, which represent 8 percent of the total September exports, declined 9 percent. In contrast, exports to China and Hong Kong increased 6 percent and 5 percent respectively.

According to unofficial figures, Israeli diamond firms shipped some $300 million worth of polished goods to Hong Kong ahead of the jewelry and watch fair. According to the Israeli Diamond Controller, however, 20 percent of net exports were shipped to Hong Kong – a total of $98.6 million. This means that Israeli traders brought back two-thirds of the goods they sent for the show.

Net imports of polished diamonds was practically flat, declining 0.2 percent to $355 million.