(IDEX Online) - The International Tender Center (ITC) inaugurated by the Israel Diamond Exchange in February 2017 has succeeded beyond expectations during its first year of activity, the Israel Diamond Exchange (IDE) said.
Due to this success, the bourse has announced that the center will be expanded later this year to encompass a venue for live auctions.
ITC, a state-of-the-art facility located within the secure premises of the IDE, hosted in its first year 20 week-long tenders of rough and polished diamonds by major diamond producers and brokers, most of whom had never before tendered goods in Israel. The companies who participated during the first year have all made reservations for the next year, and additional companies are in negotiations.
IDE President Yoram Dvash said, "We established ITC in order to meet the large demand for rough diamonds by our members, who previously had to travel abroad to take part in tenders. By opening the Tender Center we were able to save them considerable time and money, as well as to offer additional companies the possibility of taking part in these direct sales."
Zvi Zamir, Chairman of ITC and the IDE's Rough Diamond Committee, said, "The companies who have held tenders in Israel have been very pleased with the results. Some have reported that sales to Israeli companies now comprise half of their worldwide sales, with price per carat significantly higher than in other major markets. One company informed us that as a result of its tenders in Israel, final prices for their rough goods increased. An important rough producer said that the Israel viewings resulted in a measurable financial benefit to the company." Zamir added that that he expects additional important diamond suppliers to soon offer their goods at ITC.
Israel is a major consumer of rough diamonds, especially large stones of 10 carats and above. Its total net rough diamond imports in 2017 amounted to $2.7 billion. Several major diamond producers regularly hold tenders and auctions at their own facilities within the IDE complex. For example, the Russian mining company Alrosa, one of the world's largest producers of rough diamonds, holds several rough auctions in Israel every year, more than in any other venue outside of Russia.
Its most recent auction of goods, of 10.8 carats and above, held during the International Diamond Week in Israel earlier this month, brought in $13.7 million and saw a significant premium to starting prices. The company announced that it plans to hold five additional auctions in Israel during 2018.