Higher steel prices, lower coking coal prices and manageable iron ore prices have led to improved margins for steel companies, the analyst said.

China's producer prices went up in January amid a steady recovery in domestic demand, official data showed Wednesday.

The move is aimed at ensuring cost reduction in highways construction using steel.

Kalinganagar can grow to about 15 – 16 million, Angul to 10 million and Jamshedpur to 14 million, Narendran added.

In December 2020, U.S. steel mills shipped 7,049,785 net tons, a 4.4 percent increase from the 6,753,447 net tons shipped in the previous month.

Tata Steel, an Indian steel producer, plans to double the steel capacity of its existing plants in Orissa and Jarkand to 40 million tons a year, the Economic Times reported.

In addition, expectations that the US dollar will further depreciate are adding to the buoyancy in the market, they said.

On a year-on-year basis, PPI rose 0.3% in January.