Israel’s Rough Diamond Trade Loses +50% in October

Israel’s imports and exports of rough diamonds shrank considerably in October, dropping more than 50 percent as the diamond industry recoiled in response to the recent global financial woes, according to initial figures released Sunday by the Ministry of Industry, Trade and Labor.

Net exports of rough diamonds dropped in value to $144 million, a 58.5 percent decline compared to October 2007 when the country exported $348 million worth of rough diamonds.

Net imports in October totaled $209 million compared to $440 million a year ago, a 52.6 percent year-over-year decline. The sudden fall in trade is underlined by year to date figures: in the January-October period, rough diamond imports increased a modest 1.7 percent.

The sharp decline was exuberated by a drop in rough diamond prices, as evident by the recent plunging prices at BHP Billiton’s spot market tender, where prices were cut by 30 - 45 percent.

The ministry did not release carat figures at press time.