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

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

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.

From January to December 2020, China's total imports of steel products was 20.233 million tons.

"Both countries have amazing smart people in the younger generation that would be proud to be part of this," Gates said.

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.