Annual Report 2003 2004

48
The boom on the steel
market will continue.
As in 2004, the situation on the markets important to ThyssenKrupp will be mixed in 2005. We expect
the following developments:
The boom on the international steel market will continue in 2005. The key factor will remain the high
growth in Chinese demand. Even if the upward trend in China is slightly flatter, it is likely that steel,
raw materials and logistics capacities will remain in short supply worldwide. Expansion projects will
only be able to meet the rising demand to a limited extent. The situation on the raw material markets
will therefore remain tight and result in continuing high raw material costs and steel prices. Overall,
we anticipate world crude steel production of approximately 1,090 million metric tons in 2005, 5%
more than in 2004 (1,040 million tons). In Germany, production is expected to increase to 47 million
tons, compared with 46.5 million tons in 2004.
Future developments on the stainless market will depend to a large extent on capacity expansion,
especially in China. However, as growth there is expected to be weaker, stainless steel from Asia will
be increasingly sold in the higher-price countries of Western Europe. Production of stainless steel
grades is expected to reach a record level of 24.9 million metric tons in 2005. In the nickel-base
alloys area, the market recovery discernible since 2004 is expected to continue.
According to current forecasts, world auto production will rise to almost 67 million vehicles in 2005.
The main source of the 4% growth will be China and the other Asian countries. The auto market is
also expected to improve in Brazil. In North America, production is expected to rise only slightly, and
in Western Europe production volumes will remain virtually unchanged. The German auto industry
could expand its production to 5.75 million cars and trucks in 2005.
The expectations for the German mechanical engineering industry are positive. A 3% production
increase appears realistic in 2005. Growth will also continue in the usa, Japan and China, though at
a lower slightly lower rate than in 2004 as a result of the economic slowdown. Demand for machine
tools is expected to continue to grow strongly.
The situation for the German construction industry will remain difficult in 2005. A marked weakening
is expected in the usa. The prospects for the markets in Central and Eastern Europe and Asia remain
more favorable.
Subsequent events
Subsequent events are presented under Note 31 in the Financial Report.