Raw material dependency in the iron and steel industry

What is it about?

The article that served as the source and inspiration for the information presented on this page was originally published under the title “Üretim Yöntemlerine Göre Demir Çelik Endüstrisinin Hammadde Bağımlılığı: Türkiye Üzerine Bir Araştırma” in “İzmir İktisat Dergisi”, dated 06-2025, Volume 40(2), pp. 434-473. The content below offers informative and explanatory insights that include personal perspectives on the topic. You are welcome to share your questions, comments and suggestions via the contact channels and academic/social platforms listed in the menus on the right. The author(s) expect proper citation of their original work as a recognition of their scholarly contribution published in peer-reviewed scientific journals. Therefore, please refrain from citing this page and instead cite the original article. Please note that this text serves primarily as an introduction and expression of viewpoints. Thank you for your understanding. We’re looking at the global pressures shaking up the iron and steel industry, think shrinking iron ore reserves, limited scrap availability, soaring demand, and ever-evolving production technologies. These factors are forcing countries like Türkiye to rethink how they source raw materials, with trade, production, and cost now more critical than ever. This study dives deep into Türkiye’s dependency on raw materials in its steel industry and how efficient the country has been in managing its foreign trade. It doesn’t stop there, we also explore which countries and which years Türkiye performed best in, zooming in on the period between 2008 and 2022 to capture the long shadow of the global financial crisis. We used modern decision-making tools to crunch the numbers, specifically, the CRITIC method to weigh the importance of each factor, and the COBRA method to rank alternatives. So, what did we find? Türkiye hit peak performance in 2021, 2008, and 2022 when using iron ore; and in 2021, 2019, and 2008 when using scrap-based production. But 2009 and 2015? Those were the tough years, with the lowest performance across the board. When we compared countries, Italy came out on top, while Russia trailed at the bottom. What sets this study apart is how it classifies raw material dependency based on production methods and links it to trade efficiency, offering fresh insights that are both methodical and practical. It’s a focused look at Türkiye’s place in a rapidly shifting global steel landscape.

Featured Image

Photo by yasin hemmati on Unsplash

Photo by yasin hemmati on Unsplash

Why is it important?

Raw material dependency isn’t just an abstract economic term, it’s a real, pressing issue for Türkiye’s iron and steel industry. When a country relies too heavily on imported inputs like scrap and coking coal, it becomes vulnerable to global price shocks, supply chain disruptions, and political pressure. That’s why we need to start seeing this dependency as a top national priority. The numbers speak for themselves. Our research shows that Türkiye's best performance year was 2021, not by chance, but during a period with no state subsidies, continued pandemic disruptions, and tightening protectionist policies. Despite all this, production and exports peaked. This tells us something: with the right strategy, Türkiye can compete with the best. Looking closer, we saw that exports mattered most in iron ore-based production, while scrap imports were critical in scrap-based methods. This reflects a bigger truth, ensuring steady input flow is key to keeping production alive. Italy is leading the way, Russia is lagging, and Türkiye can learn from both. Globally, countries like Finland have already taken steps with bold R&D-driven programs to modernize their steel industries. Türkiye, with its established ship recycling sector, skilled metal industry, and growing digital potential, has all the building blocks. But without integrated research centers, innovation labs, and accredited testing hubs, we risk falling behind. The big picture? The world is heading into the "scrap era" a shift where control over scrap flows and trade will define industrial power. Türkiye must not only anticipate this, but lead it. That means forecasting future steel demand, improving scrap tracking, and simulating how carbon border taxes will reshape our exports. Most of all, we need smart, forward-looking policies: boost R&D, support green transformation, digitalize production, and unlock higher value-added products like stainless and specialty steels. This is the only way to reduce raw material risks, stay globally competitive, and respond to both environmental challenges and market dynamics. And let’s not forget, the iron and steel industry isn’t just an economic pillar; it’s a strategic one. From trade restrictions to EU regulations on scrap exports, the rules are changing fast. If Türkiye wants to stay in the game, we need more international cooperation, smarter policy frameworks, and a unified long-term national steel strategy.

Perspectives