China has openly declared its intention of easing small and inefficient steelmakers out of its crowded domestic steel sector. But the most significant catalyst for what China has set out to achieve seems to be coming from India, where a new tax on iron-ore exports will likely lead to higher spot prices and may eventually force the closure of small steel producers in China, the biggest market for India's iron ore, analysts said. China has announced a slew of measures in recent months to achieve a nearly 10 percent reduction in domestic steelmaking capacity, and analysts say the government is serious about pushing that plan through ahead of the 2008 Beijing Olympics.
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