Polished diamond exports rose 58.5% in October, after a fall in profitability for diamond merchants following an increase in the price of rough diamonds, which was not followed by an increase in global consumer prices. Ministry of Industry, Trade and Labor controller of diamonds Shmuel Mordechai said that “the figures for October were encouraging, and give rise to the hope that the recovery in the sector will intensify further.”
However, Israeli Diamond Manufacturers Association president Moti Ganz claimed that “there was no sign of any significant change in the sector, quite the opposite.” Ganz attributed the increase in exports to “the transfer by Israeli diamond companies of goods to their overseas branches since it is easier to sell diamonds there. In the meantime, there has not been any unusual demand for demands and shops abroad have not reported any increase.”
Exports of polished diamonds (net of returns) totaled $611 million in October, compared with $386 million in October 2005. Net diamond exports fell 1% to $5.54 billion in January-October from $5.59 billion in the corresponding period last year.
Net rough diamond exports rose 36% to $265 million in October. Imports of rough diamonds rose by 78.2% to $545 million, from $306 million. Imports of polished diamonds rose 42.4% to $379 million.
Published by Globes [online], Israel business news - www.globes.co.il - on November 6, 2006
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