The Indian steel industry could face adverse pricing pressure as Chinese steel players turn attention to global markets in the next three years, according to a report by industry body Assocham.China, already accounts for 24% of the world steel output and has turned into a net exporter.In its report titled 'eco pulse-the steel surge', Assocham said China's imports decreased by 24% last year while its exports doubled in the same period. Besides, the Chinese government has proposed a series of tightening policies to avoid overheating of the economy, it said.The move by the Chinese is likely to affect the Indian economy, which looks to the neighbouring country's markets, it pointed out.The report said significant capacity expansions were taking place throughout the world which could result in a decline in trade inflows. The domestic steel industry can well be in the midst of a crisis if capacity expansion surpassed demand significantly, it added.Consumption of global steel jumped by 8.8% to 935 million tonnes in 2004 as compared to 2003. In the Organisation for Economic Cooperation and Development (OECD) area, steel demand increased by 7.5%, according to the report.However, China continues to be the world's largest consumer of steel accounting for as much as 25% of the global steel consumption and its share is expected to increase to 29%.
