Milan: Indian steel consumption is seen rising to about 130 million tonnes in 2020 from about 67 million tonnes this year as growing incomes and urbanisation drive demand, a senior executive at JSW Steel Ltd said on Thursday.
India’s steel output is expected to rise to more than 150 million tonnes in 2020 from close to 70 million tonnes this year and about 80 million tonnes in 2012, JSW Steel senior vice president in charge of sales Sharad Mahendra told a steel conference organised by Metal Bulletin.
JSW Steel has cut its 2020 steel consumption forecast from an earlier expectation of an about 200 million tonnes, in line with the government forecast reduction, due to delays in some projects to boost production capacity, Mahendra told Reuters on the sidelines of the conference.
JSW Steel total annual production capacity is expected to rise to 35.3 million tonnes in 2020 from 14.3 million tonnes this year thanks to new green field projects in India, he said.
India’s total production of coated and galvanized steel which is used in environments requiring corrosion resistance is expected to rise to more than 6 million tonnes in 2013 from 4.7 million tonnes this year, Mahendra said.
India’s current coated steel production capacity stands at 6.2 million tonnes, he said.
The construction sector, which accounts for about 50% of galvanized steel consumption, will be the main demand growth driver, with demand from white goods and automobile industries rising too, he said.
India is expected to export about 1 million tonnes of coated products this year, with Middle East and Africa accounting for 32% of exports and Europe for 22%, he said.
Japan’s JFE Holdings holds a 14.8% stake in JSW Steel.