The year 2004 was characterized by continued high demand for steel and stainless steel products, mainly as a result of strong demand from China.  World consumption of finished steel has risen by 7.7% to approximately 950 million tons in 2004.  The stainless steel market developed likewise, with global consumption of stainless steel growing by 7% to approximately 24 million tons in 2004.  China continued to lead the growth of global (stainless) steel consumption and production.

Prices for cold-rolled steel and stainless steel products increased steadily during the reporting period and remained at a very high level until the end of the year.  Capacity utilization was at a very high level throughout the whole year even though capacities increased quite steeply.

Project activity was almost solely concentrated on China (including Taiwanese, Korean, and European investments in China), where several large projects, especially in stainless steel, were decided.  Andritz was able to secure a large share of orders for stainless steel plants, thus confirming its leading market position in this area.  In North America and Europe, only selective investments were made.

The measures of the Chinese government to slow down over-investment in some industries like cement or steel led to a delay of some projects from new private companies.  However, projects of established steel producers continued as planned.