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IISI Short Range Outlook for use of finished steel products

Brussels, 19 April 2005 - Brussels, 19 April 2005 - The International Iron and Steel Institute (IISI)

forecasts that the total use offinished steel products in 2005 will exceed 1 billion metric tonnes for the first

time. Total world demand is forecast to grow by 3.7% in 2005, an increase of36 million metric tonnes

(mmt) compared to 2004.

IISI forecasts growth in China will be over to % with steel use reaching 293 mmt this year. IISI expects China

will account for 29% of total steel demand and nearly 80% of world growth in 2005. However, growth in the

rest of the world will only be around i % or 8 mmt.

IISI expects apparent steel use will fall in several European countries and the USA in 2005. Slower economic

growth, combined with an adjustment to steel stocks, will cause the temporary decline.

In 2006, IISI forecasts the use of finished steel products will grow by 4.8% and reach 1.05 billion metric

tonnes. A recovery in the world's economic activity will guarantee growth in steel demand in a wider range of

countries. In addition to continuing growth of 9.2% in China, the forecast is for growth rates of 9.4% in

Brazil, 6.2% in the Middle East, and 6.4% in India.

During 2005/2006, the broad pattern of small but positive real growth in steel demand will continue in the

industrialised countries. This will be combined with faster rates of growth in developing countries. China

will remain the dominant influence in world steel demand.

APPARENT STEEL DEMAND 2004 - 2006 (IN MMT)

2004 2005 2006 A 2004 - 2005 L 2005 - 2006

World 967. 9 1004 1052 . 5 3.70% 4.80%

World Excluding China 702.9 711 732.5 1.10% 3.00%

APPARENT STEEL DEMAND BY REGION 2004 - 2006 (IN MMT)

2004 2005 2006 L. 2004 - 2005 A 2005 - 2006

EU-15 145 .7 147.3 149.4 1. 10% 1.40%

France 16.6 16.5 16.7 -0.60% 1.20%

Germany 35.9 35.6 36.5 -0.80% 2.70%

Other Europe 26.1 27. 3 28.8 4. 70% 5.60%

CIS 52 50 . 6 52.5 -2.80% 3.80%

Russia 33.7 31.8 33.1 -5.60% 4.10%

NAFTA 148. 6 145 .2 147. 3 -2.20% 1.40%

USA 115.9 111.9 113.7 -3.50% 1.60%

Mexico 15.5 16.4 17.3 5.70% 5.10%

Central and South

America

33.3 36 . 2 38.9 8 . 60% 7.60%

Brazil 18.4 20.2 22.1 9.80% 9.40%

Africa 18 . 7 19.6 20 . 6 4.20% 5.10%

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 EE-RM/STD-00-550 COMMENT 86

WORLDSTEE 

imn& 

lISI Short Range Outlook for use offinished steel products 

Brussels, 19 April 2005 - Brussels, 19 April 2005 - The International Iron and Steel Institute (lISI) 

forecasts that the total use of finished steel products in 2005 will exceed 1 billion metric tonnes for the first 

time. Total world demand isforecast to grow by 3.7% in 2005, an increase of36 million metric tonnes 

(mmt) compared to 2004. 

lISI forecasts growth in China will be over 10% with steel use reaching 293 mmt this year. lISI expects China 

will account for 29% of total steel demand and nearly 80% of world growth in 2005. However, growth in the 

rest of the world will only be around 1 % or 8 mmt. 

lISI expects apparent steel use will fall in several European countries and the USA in 2005. Slower economic 

growth, combined with an adjustment to steel stocks, will cause the temporary decline. 

In 2006, lISI forecasts the use of finished steel products will grow by 4.8% and reach 1.05 billion metric 

tonnes. A recovery in the world's economic activity will guarantee growth in steel demand in a wider range of 

countries. In addition to continuing growth of 9.2% in China, the forecast is for growth rates of 9-4% in 

Brazil, 6.2% in the Middle East, and 6-4% in India. 

During 2005/2006, the broad pattern of small but positive real growth in steel demand will continue in the 

industrialised countries. This will be combined with faster rates of growth in developing countries. China 

will remain the dominant influence in world steel demand. 

APPARENT STEEL DEMAND 2004 - 2006 (IN MMT) 

2004 2005 2006 !J. 2004 - 2005 !J. 2005 - 2006 

World 967.9 1004 1052.5 3.70% 4.80% 

World Excluding China 702.9 711 732.5 1.10% 3.00% 

APPARENT STEEL DEMAND BY REGION 2004 - 2006 (IN MMT) 

2004 2005 2006 !J. 2004 - 2005 !J. 2005 - 2006 

EU-15 145.7 147.3 149.4 1.10% 1.40% 

France 16.6 16.5 16.7 -0.60% 1.20% 

Germany 35.9 35.6 36.5 -0.80% 2.70% 

Other Europe 26.1 27.3 28.8 4.70% 5.60% 

CIS 52 50.6 52.5 -2.80% 3.80% 

Russia 33.7 31.8 33.1 -5.60% 4.10% 

NAFTA 148.6 145.2 147.3 -2.20% 1.40% 

USA 115.9 111. 9 113.7 -3.50% 1.60% 

Mexico 15.5 16.4 17.3 5.70% 5.10% 

Central and South 33.3 36.2 38.9 8.60% 7.60% 

America 

Brazil 18.4 20.2 22.1 9.80% 9.40% 

Africa 18.7 19.6 20.6 4.20% 5.10% 

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China 265 293 320 10.60% 9.20%

India 32.3 34.3 36.5 6.20% 6.40%

Japan 76.9 78.5 78.5 2.10%

South Korea 47.2 47 49.3 -0.40% 4.90%

Rest of Asia 73.8 74.8 77.2 1.40% 3.20%

Press enquiries: John Fewtrell - IISI, 120 Rue Colonel Bourg, 1140 Brussels or e-mail: press@iisi.be

worldSTAINLESS (ISSF) I steeluniversity.org I Sustainable Steel I worldALJTOsteel

Members only [info] : worldsteel extranet I worldstainless extranet

http://www.worldsteel.org 108 August 2005 1 contact I © IISI

file://C:\DOCUME-1\jvanderv\LOCALS-1\Temp\DHRUPF7Q.htm 8/8/2005

 EE-RM/STD-00-550 COMMENT 86

China 265 293 320 10.60% 9.20% 

India 32.3 34.3 36.5 6.20% 6.40% 

Japan 76.9 78.5 78.5 2.10% 

South Korea 47.2 47 49.3 -0.40% 4.90% 

Rest of Asia 73.8 74.8 77.2 1.40% 3.20% 

Press enquiries: John Fewtrell- IISI, 120 Rue Colonel Bourg, 1140 Brussels or e-mail: press@iisi.be 

worldSTA1NLESS (ISSF) I steeluniversity.org I Sustainable Steel I worldAUTOsteel 

Members only [info] : worldsteel extranet I worldstainless extranet 

http://www.worldsteel.org I 08 August 2005 I contact I © IISI 

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