“Steel consumption will nearly double by 2020,” Sharad Mahendra, senior vice president in charge of sales at India’s leading steel producer JSW Steel, told a steel conference organized by Metal Bulletin.

The construction sector, which accounts for about 50 percent of galvanized steel consumption, will be the main demand growth driver, with demand from white goods and automobile industries rising too, he said.

JSW Steel has cut its 2020 steel consumption forecast from an earlier expectation of an about 200 million tons, in line with the government forecast reduction, due to delays in some projects to boost production capacity, Mahendra said on the sidelines of the conference.

India’s steel output is expected to rise to more than 150 million tons in 2020 from close to 70 million tons this year and about 80 million tons in 2012, he said.

India produced 66.8 million tons of steel in 2010 and was the world’s No. 5 producer, according to data from the World Steel Association.

JSW Steel total annual production capacity is expected to rise to 35.3 million tons in 2020 from 14.3 million tons this year thanks to new green field projects in India, Mahendra said.

JSW Steel’s capacity has increased from 11 million tons after taking over a smaller rival Ispat earlier this year, he added.

India’s total production of coated steel which is used in environments requiring corrosion resistance and includes zinc-covered galvanized steel, is expected to rise to more than 6 million tons in 2013 from 4.7 million tons this year, Mahendra said.

India’s current coated steel production capacity stands at 6.2 million tons, he said.

Gorkem Bolaca, general manager of the steel division of trading company LN Metals, said overall world demand for coated steel has slowed down in the past few months due to concerns about global economy, sovereign debt problems in Europe as well as summer holidays.

But demand from developing countries remained very strong and has been offsetting sluggish demand from developed countries in the overall picture, Bolaca said.

“For steel demand, 2011 not as good as 2010 but not as disastrous as 2009. In 2012 ... we expect an increase in demand but not a full recovery (to pre-crisis levels),” Bolaca said at the conference.

Mahendra said India is expected to export about 1 million tons of coated products this year, with Middle East and Africa accounting for 32 percent of exports and Europe for 22 percent. 

Japan’s JFE Holdings holds a 14.8 percent stake in JSW Steel.