April 03, 2007	Tuesday	Rabi-ul-Awwal 14, 1428

LONDON, April 2: Turkey plans to step up efforts to break into new jewellery markets and raise its share of world trade in the face of stiff competition from China and India. “Turkey still has a good name in the international jewellery sector and we've now started to be more aggressive,” consultant Metin Duyar at the Union of Chambers and Commodity Exchanges in Turkey told Reuters.

“We are working on strategies to increase jewellery exports and we have identified new target markets.” Duyar said his organisation was in talks with Nigeria, Iran, Indonesia, Pakistan, Malaysia, Egypt and Bangladesh about the possible removal of jewellery import taxes.

High and volatile world gold prices prompted jewellery wholesalers to put off purchases in 2006, while attractive offers from low-cost producers, such as China and India meant Turkey took a hit in major export markets.

Gold jewellery exports by Turkey, one of the world's top three alongside Italy and India, fell 22.4 per cent to 85.8 tons in 2006, with exports to the US market falling by 33 per cent.

The United States is the biggest export market for most of major jewellery producers in the world.

Duyar said world gold prices continued to hurt demand, squeezing producers' margins and even forcing some small manufacturers to shut down.

“Whenever the prices go up people start thinking about alternatives to jewellery...With demand and exports falling, only big firms can survive,” he said.

World gold prices rose to a nine-month high of $689 an ounce at end-February, before slipping to current levels near $660, almost 10 per cent off the 26-year peak of $730 hit last May.

Duyar estimated gold bullion imports would reach 200 tonnes this year, slightly higher than last year, but was more upbeat about gold jewellery exports exceeding 2006 levels.

Turkey's gold jewellery exports rose 10 per cent to 13.1 tons in the first two months, but March figures will be a good indication of whether the recovery is robust. —Reuters