In order to expand its target market, Aras Steel Industry Group took part in Metal Expo Istanbul 2023 for the second time.
Aras Steel, which we visited during our participation at 5th İstanbul Metal Expo, drew attention with its production capacities and targets.
Saeid Montakhabi, Sales Manager of Aras Steel , stated, “We are committed to expanding our market presence, not only in Iran but also in all neighboring countries with a demand for our products. As an illustration of our international reach, we consistently export to various destinations, including Türkiye specifically Karabük, İskenderun, and Gebze, Georgia, and various African countries. Our exports to African nations are managed through intermediary traders, a practice tailored to the capacity of our factory. To provide a concrete example, we engage in high-tonnage exports facilitated by 50,000-ton ships. Our overarching objective is to achieve international expansion. While local demand remains strong, we are actively exploring global market demands through SteelRadar reports.
Regarding our inquiry about the Iranian market, the response was as follows: The entry of Russia into the Turkish market with competitively priced products has reduced competition for Iran.
When queried about the factory's operations and production capacity, Mr. Montakhabi stated, "We produce 12,000 tons of billets per month." In response to our question regarding the decrease in production capacity in Iran, the following explanation was provided: The domestic market in Iran is currently experiencing a combination of confusion and weakened demand. A recent power outage has significantly disrupted billet production, resulting in a temporary supply shortage.
The products are sold in Iran through the Iran Commodity Exchange. However, for export sales, we utilize both traders and direct sales from the factory.
In response to the question, "Are you planning to increase billet production?" the answer is as follows: "Our development plans are focused on final products, such as flat and long products."
"At present, we are contemplating an expansion of our billet production at the factory we have established in Armenia. In the initial phase, our production capacity has reached 2,000 tons per month at the Armenian facility. Additionally, our projects for semi-finished product production lines in Armenia are progressing, and we anticipate commencing production and export in the near future."
He responded to the question regarding the source of raw materials for production and their availability in various countries as follows: "Iran sources its raw materials from the domestic market. Approximately 90% of the raw materials we use in production consist of sponge iron, with the remaining 10% being scrap. It's worth noting that Iran holds the second position in global sponge iron production."
When we inquired about their new investments, perspectives, or approaches concerning green steel, the response was as follows: "Our objective is to install solar panels in Iran, primarily to address electricity supply issues and also contribute to environmental conservation. We plan to generate 50% of our electricity from these solar panels."
Appealing to the governments of Iran and Turkey
Finally, with regard to trade relations between Iran and Turkey, they expressed the following sentiment: "While our trade relations between Iran and Turkey remain positive, certain factors imposed by the regulations of both countries, such as tax fees, have hindered the smooth flow of trade between the two nations. We earnestly request that the governments of both countries expedite efforts to find solutions to these issues."