Global steel companies have been asked to keep a steady eye on prices to ensure they do not get affected by Chinese overproduction levels.

The International Iron and Steel Institute, a nonprofit research organization and world forum on various aspects of the international steel industry made the statement on Tuesday.

In the first seven months of 2006, China's steel product exports reached 20.67 million tons, up 58 percent over the same period last year. However, imports dropped 29 percent during that time.

The Bush administration has previously been called upon by US steelmakers to monitor the flow of Chinese steel imports into the country.

The IISI said that medium and long-term forecasts for world steel demand suggest China and India will remain the top consumers.