Material Procurement
AG Silver sources steel products within its trading range mainly from the Commonwealth of Independent States (C.I.S.), Eastern Europe and Turkey. The Black Sea Region is now considered the main export source for various carbon steel products in the world steel market. Taking advantage of its strategic location, the Steel Division is able to provide materials satisfying customers' price and quality expectations. Material procurement can be detailed based on geographical locations as follows:
Sourcing From Turkey:
AG Silver has a very well established relationship with all main Turkish state-owned integrated steel mills. The Steel Division exports a considerable share of flat products from Eregli Iron and Steel Works, the only fully integrated flat products manufacturer in Turkey, and of long products from TDCI Iskenderun Iron and Steel Works, the biggest Turkish fully integrated long products manufacturer.
The Steel Division having strong links and partnerships with all other Turkish private long, flat, tubular steel products manufacturers is now the most reliable export channel for these producers too. The Steel Division, by supplying raw materials or by prefinancing the mills, has become an indispensable business partner for the Turkish producers. This privilege leads the Steel Division to offer the most advantageous prices and delivery terms to its customers.
Sourcing From C.I.S.:
No one can underestimate now the role of the C.I.S. in worldwide steel markets. Having large export volumes, acceptable qualities and extremely advantageous price ranges, the C.I.S. steel is presently a dominant factor in the steel world.
AG Silver established close connections with all major C.I.S. mills just after the opening of the former Soviet States to free trade. The Steel Division exports large volumes of various steel products starting from raw materials to flat, long and tubular finished products mainly from :
Krivoi Rog, Zaporozhstal, Ilyich, Dneprodzerzhinsk, Donetsk, Azovstal, Alchevsk, Makeevka, Enakievo, Kramatorsk, Konstantinovka Mills of Ukraine, Magnitogorsk, Novo Lipetsk, Cheropovets (Severstal), Cheliabinsk (Mechel), OEMK, Orsk-Khalilova, Nizhny Tagil, Zapsib, Amurstal, Zlatoust, Serov, Tulachermet Mills of Russia, Ispat Karmet Mill of Kazakhstan, Moldova Steel Works of Moldova, Liepajas Steel Works of Latvia, etc.
Outside of direct sourcing from the C.I.S. mills, the Steel Division has also created close partnerships with the C.I.S.'s giant companies which are supplying energy, raw materials, equipment to steel mills and are reimbursed by the steel products produced by those mills. These companies which are not in reality active in the steel trading business have chosen Gen Trans as their export channel to easily liquidify their steel stocks into money. Partnerships with such companies having controlling shares and being the most reliable channels in material sourcing from the mills, have enabled the Steel Division to have regular material sourcing with shortest delivery terms and best price composition and to become now an expert in C.I.S. material sourcing.
Sourcing From Eastern Europe:
The Steel Division supplies steel products from the C.I.S. when the customers require reasonable price for acceptable quality, and from Turkey when the quality is their first priority. However, a third type of customer requiring medium quality but acceptable price levels has led the Steel Division to a third alternative source:
Eastern Europe.
In a short time, the Steel Division has created solid links with the main steel mills in Romania, Bulgaria, Hungary, Slovakia and the former Yugoslavia and is now considered as a reliable source for Eastern European steel sourcing.
Other Sourcing Channels:
Especially for steel making raw materials and semi-finished steel products (scrap, iron ore, pellets, slabs, etc..) and depending on the customers' special material requirements, the Steel Division is also actively sourcing iron and steel from different parts of the world such as the Americas, Europe, the Far East, Africa and the Middle East.
In addition to that, Gen Trans is closely following all the developments and changes in market conditions in different parts of the world and quickly adapts to the customer's needs by finding the best sources.