Integrated Production Ratio as a Measure of Steel Industry Competitiveness

The evolution of the steel industry has been characterized by the dual pursuit of quantitative output and qualitative excellence. However, existing studies and media have predominantly emphasized crude steel production as the primary indicator of a steel company’s competitiveness. However, this metric does not adequately reflect the quality competitiveness in this industry. This study introduces the integrated production ratio (IPR), defined as the proportion of cold-rolled steel sheet―a representative high-grade product―within a company’s total steel output, as a complementary metric. A higher IPR reflects a greater focus on high-grade steel production and thus serves as an indicator of quality competitiveness. The utility of IPR is demonstrated through an analysis of production trends from POSCO, a leading Korean steel manufacturer.