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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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# WORLDSTEE imn&
lISI ShortRange Outlookfor use offinished steel products 

### Brussels, 19

### April 2005
- 

### Brussels, 19

### April 2005
- 

### The International Iron andSteel Institute (lISI) forecasts thatthe total use of finished steelproducts in 2005

### will exceed 1 

### billion metric tonnesfor the first time. Total worlddemand 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 mmtthis year. lISI expects China will accountfor 29% oftotal steel demand and nearly 80% ofworld growth in 2005. However, growth inthe rest ofthe world will onlybe around 1% or 8 mmt. lISI expects apparent steel use will fall inseveral European countries and the USA in 2005. Slower economic growth, combined with an adjustmentto steel stocks, will cause the temporary decline. In 2006, lISI forecasts the use offinished steel products will growby4.8% and reach 1.05 billion metric tonnes. Arecovery inthe world's economic activitywill guarantee growth in steel demand in a wider range of countries. In addition to continuing growth of9.2% in China, the forecast is for growth rates of9-4% in Brazil, 6.2% inthe Middle East, and 6-4% in India. During 2005/2006, thebroadpattern ofsmall butpositive real growth in steel demand will continue inthe industrialised countries. This will becombined with faster rates ofgrowth in developing countries. China will remainthe dominantinfluence 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 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 

### Iworldstainless extranet

http://www.worldsteel.org 

### I08 August 2005 

### Icontact 

### I© IISI

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