Rapaport Magazine
Markets & Pricing

Israel


Industry sluggish ahead of holiday

Upcoming Passover festival, Indian fraud and disappointing Hong Kong show weigh on sentiment.

By Joshua Freedman
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.

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