Israel Sees Increase in Value of Polished Exports

Israel’s net polished-diamond exports rose in November despite the country’s war with Hamas, benefiting from a higher average price and a drop in returned goods.

Polished shipments out of Israel more than doubled to $107.3 million for the month, compared with $38.7 million a year earlier, the Ministry of Economy and Industry reported last week. The volume of exports declined 33% to 76,885 carats, with the average price more than quadrupling to $1,396 per carat from $336 per carat a year before.

The government reports exports after subtracting returned diamonds — for example, those that went unsold or were shipped for an overseas trade show. On a gross basis — before returns — polished exports came to $399.5 million, 42% lower than last year’s gross sum.

The result also reflects a favorable comparison with last year, when weakness in the global market led to unusually low figures for November, explained Ophir Gore, Israel’s diamond controller, who regulates the sector.

“It’s important to note that November 2022 was extremely weak, partly due to returns,” said Gore. “Therefore, the comparison to a particularly weak month shows an increase, although it is not a particularly high figure objectively in November 2023.”

Polished imports fell 26% year on year to $146.9 million on a net basis in November, according to the government data. Rough exports declined 68% to $24.4 million, while rough imports dropped 75% to $30.1 million.

“The war [in Gaza] is contributing to the negative trend that has accompanied the global diamond industry since the start of the war in Ukraine,” Gore added in a statement. “At the same time, from our analysis, it appears that most of the damage was in the first two weeks after the outbreak of the war, [and] mainly due to issues with transportation of goods.”

Since then, the industry has found solutions and the declines have eased, Gore continued.

In the first 11 months of 2023, polished exports fell 9% year on year to $3.37 billion.