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China's reopening has been a key driver for the steel companies. According to a JPMorgan report, the demand environment for steel companies is expected to improve post-Chinese lunar new year and more price hikes are on the way.

While speaking to CNBC-TV18, RK Goyal, MD of Kalyani Steels said the cost of making steel increased to Rs 6,000 due to the direct impact of raw material inflation.

“Rs 6000 (per metric tonne) is the cost increase on account of direct raw material price. But the way overall cost structure has gone up, in the process, the working capital requirement has gone up by 80-100 percent in the last one-one-and-a-half year coupled with 3-4 percent increase in interest rates and this has also impacted us substantially by way of financial cost on our working capital,” he said.

Also Read | JPMorgan expects rising steel demand to aid further price hikes

Talking about raw materials, he said costs are continuously increasing; coking coal prices have gone up, iron ore prices have gone up and with China opening prices of all other raw materials will go up.

Also Read | Chinese market too attractive for world to look the other way: Expert

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