The Israeli polished-diamond market slowed in the run-up to
Passover. Many companies in the bourse close or have limited operations during
the seven-day festival beginning March 31.
Aside from the pre-vacation dip, traders also had reason to
be less optimistic than in previous months. Some feared the potential impact of
the Nirav Modi fraud case on the market, and on the ability of Israeli
companies’ business associates in India and elsewhere to obtain bank credit.
In addition, the March Hong Kong trade fairs failed to meet
expectations due to weaker-than-anticipated attendance. However, shortages in
certain categories supported prices.
Price drops
There was a slight overall drop in polished
prices after the Hong Kong shows, according to
Carats.io, a technology company that launched
an Israeli diamond-price index earlier this year.
While dealers increased prices ahead of the exhibitions to
meet high demand, they swiftly lowered them in March to ensure they were still
closing deals despite the slight slowdown.
“Israeli traders took advantage of
the firm asking prices for polished diamonds by traders in India, and lowered
prices to grab the opportunity,” Carats.io said.
No change at the top
MID House of Diamonds continued its reign as the country’s
number-one polished-diamond exporter in 2017, even as its shipments slipped 5%
to $175 million, according to the Ministry of Economy and Industry.
“We are, of course, delighted at hearing the news,
especially during a challenging time for the trade, such as we experienced in
2017,” said Michael Meirov, CEO of MID.
D.N. Diamonds’ exports grew 17% to $119 million, bringing it
into second place, while Niru Diamonds Israel moved down into third place after
its exports dropped 11% to $116 million. The ranking excludes 10 companies that
chose to keep their data confidential.
The president’s choice
Israel Diamond Exchange (IDE) president Yoram Dvash pleased
his supporters by announcing in mid-March that he had turned down the top role
at the World Federation of Diamond Bourses (WFDB) in order
to continue his work at the Ramat Gan bourse.
Dvash, who is vice president of the WFDB, learned during the
organization’s executive-committee meeting in Germany that he was the only
candidate for president, and was therefore due to take on the role formally at
the World Diamond Congress in Tel Aviv this June.
However, being president of the WFDB would make it
impossible for Dvash to put his full energy into his position at the IDE, he
explained in a Facebook post.
Article from the Rapaport Magazine - April 2018. To subscribe click here.