Waldman Diamond Company

Waldman: Israel's diamond exports are slowing as expected, but not beyond the predicted 15 percent mark.
March 2001

Israel's polished diamond exports slowed significantly during the first two months of 2001, as was widely expected throughout the community of Israel's polished diamond exporters.

Speaking from the headquarters of the Waldman Diamond Company (WDC) Group at the Ramat Gan diamond exchange, chief executive officer Alexander Waldman said that the market was not behaving erratically, but rather sitting on the fence awaiting further economic developments during the coming months.

"With the United States still wondering if it is in a recession or not, our buyers are nor rushing to re-stock diamond inventories, " he said, "and with the Asian markets still slow, and Europe remaining careful, the phenomenon of a market-in-waiting is now a rather global one."

Net polished exports from Israel in February dropped 18 percent in carat weight, down to 362,747 carats from 441,583 carats in the same month of 2000. In value, the drop was 19.2 percent, to $391.7 million from $484.6 million in February 2000.

It should be noted, however, that the volume of the gross polished exports in February remained very high. In carats 528, 643 carats were exported, worth an impressive $629.5 million. But these figures were set off by the high percentage of goods that were returned to Israel during the month, 31.4 percent in weight and 37.8 percent in value.

On the other end of the scale, rough diamond imports skyrocketed more than 70 percent in weight, but dropped more than 14 percent in value, indicating that the industry was buying¾and receiving in its sight boxes¾ rough diamonds of a lower price per carat.

"It's difficult to get a very clear picture of its policy," Waldman said, "but it seems that the De Beers' Diamond Trading Company has been supplying its clients with a larger, but cheaper volume of rough goods its the past sight. This, hopefully, can be understood as a sign that the DTC has not only become far more sensitive to its clients' prerogative than before, but also is swift in reacting to the changes in the polished diamond market."

Waldman—who is not a sightholder and purchases his goods on the open market—added that an improved equilibrium between the rough supply side of the diamond market and the world polished market only would serve to the stability of both sides. "Today, it seems that the rough suppliers, including the independent rough sellers, understand that they need to take careful note of events in the polished markets," he suggested.