Waldman Diamond Company

United States market remains cautious, while China is slowing down
July 3, 2000

RAMAT GAN, ISRAEL - The increase in polished diamond exports from Israel in May and June suggest that business is booming. Polished exports stood at $304 million, an increase of more than seven percent compared to the same month last year. Imports of rough and polished both rose with tens of percents while rough exports even doubled in June, in weight as well as in value.

Says Aharon Tamir, the senior sales director at the Waldman Diamond Company (WDC) Group, in Ramat Gan, "while at the recent JCK show in Las Vegas, good business was done, the U.S. market is still waiting for a true upsurge in activity. For a company like ours, trade shows like Las Vegas are an excellent opportunity to liaise with our clientele. As we run joint programs with retailers, our appointment book was filled from early morning until closing time. As result, a lot of work was accomplished and firm sales were made. It was a good show!"

But one good show doesn't make for an industry recovery. "Immediately after the JCK show the market slowed down significantly. It seems to me that we'll have to wait until after the week of the Fourth of July to see a resumption of sales," Tamir said.

Meanwhile, both manufacturers and exporters remain concerned about the continuous narrowing of the industry's profit margins.

In Asia, the end of April signals the conclusion of the fiscal year, and May 1—labor day—will be the first opportunity in a while for many consumers to go out and spend some of the hard earned money on luxuries. "Sales in China are actually pretty good, Tamir stated. "The Chinese consumer likes to buy his or her diamonds with a grading report—most of which are produced by local labs. They are buying goods from 10 points and up in colors that range between H and J, in a range of clarities that do not fall under the I2-P1 borderline."

Japan is showing no real improvement in diamond sales, Tamir said. "We know of several companies that sticking it out there, despite the fact that they are actually losing money there. That is understandable, since in Japan long term relationships are highly valued. As far as the WDC Group's presence in Japan is concerned, we will continue to service our clientele in Japan." Tamir stated.