Expressing concerns over China giving incentives for steel exports, ArcelorMittal chief L N Mittal said such steps could further delay of recovery of the sector which is anyway unlikely before 2011.

"The recovery could also be negatively impacted by possible increases in subsidies and instances of dumping. The recent news that China has reinstated export rebate for its steel producers is very concerning, particularly in the current climate," the NRI billionaire said here at a conference.

"...a full recovery will be slow and progressive. Peter may well be correct when he says we will not see a return to very strong levels of demand before 2011," he added.

China had earlier this month announced up to 9 per cent rebate on exports of steel products to boost shipment and production of the commodity.

Indian steel industry along with its global counterparts had taken strong exception to it and demanded an urgent imposition of import restricting measures from the government.

After a period of gloom in past three quarters when the demand as well as prices of the commodity crashed, the global steel industry is witnessing "green shoots", Mittal said.

However, he cautioned that "a situation of overcapacity is likely to continue to exist for the duration of this year and beyond ¿ particularly in the developed world."