A comparative analysis to determine Turkey's international competitiveness in the iron and steel industry

This study aims to determine Turkey's international competitiveness in the iron and steel sector and reveal its potential for development. In this study, international trade data in steel production between 2017 and 2021 from sources such as Trademap, World Steel Association, Turkish Steel Producers Association, and Turkish Steel Exporters' Association were collected. The gathered data underwent analysis based on concentration ratios CR4 and CR8, commonly used for concentration analysis, along with metrics like the Herfindahl-Hirschman Index (HHI). The CR4 index assesses the concentration of the top four competitors and the market within the sector, while similarly, the CR8 index evaluates the intensity of the top eight competitors and the market. The HHI index stands out as a method to determine the level of competition intensity within the sector. These evaluations were employed to determine Turkey's international competitiveness and concentration level within the iron and steel industry. The results indicate Turkey's significant production capability in the iron and steel sector. However, upon scrutinizing Turkey's steel production, limitations were observed in the production, export, and competitive prowess, particularly in flat steel products with versatile applications, high demand, and substantial added value. It was noted that Turkey tends to produce long steel product groups situated in less concentrated markets with more constrained demand. Additionally, challenges in sustaining Turkey's international competitiveness arise due to factors like dependency on raw materials and energy.