Israel Sees Downturn in Polished Exports

RAPAPORT... Israel's polished-diamond exports continued to decline in2017, dropping 4% to $4.48 billion. In volume, outbound polished-diamond shipments fell 6% to1.7 million carats in 2017, the nation's Ministry of Economy and Industryreported last week. The average price for polished exports increased 2% to$2,588 per carat. Exports to the US, a highly important market for the Israeli trade, slid 7%to $1.69 billion, while shipments to Belgium bounced back, surging 20% to $420million. Polished imports fell 11% to $2.92 billion, while netpolished exports - representing exports minus imports - climbed12% to $1.56 billion. Rough trading also declined, with imports down 12%to $2.85 billion, while exports slipped 18% to $2.23 billion. However, netrough imports - the excess of imports over exports - rose14% to $623 million. Israel's net diamond account - net polished exports minusnet rough imports - grew 10% to $932 million for the year. Even so, the final quarter of 2017 showed improvement, with polished exports jumping 31% year on year to $1.1 billion. Israel's diamond market has slowed since the 2008 global financial crash, with a lack of bank credit and increased competition from other countries making a recovery difficult, a government committee said earlier this month. The state has pledged to guarantee $284 million in loans to the trade to encourage growth.2017 saw the third consecutive year of decline in polished exports, Rapaport records show.Image: Israel Diamond Exchange. Credit: Three Photographers