A delegation of steel companies, led by steel secretary V K Duggal, will visit China next month to smoke the peace pipe following a warning that the country might adopt safeguards against rising steel exports from India.

Industry sources said the delegation would comprise CEOs from the Indian Steel Alliance, which includes Tata Steel, Steel Authority of India Ltd, Essar Steel, and the Ispat and Jindal groups.

The delegation was supposed to visit China early this year, but the trip was put off because of the Sars outbreak. The visit has become more significant now since India's flat product exports to China have crossed the threshold limit of 3 per cent.

Industry sources said the domestic steel companies would be making presentations before the Chinese government both individually and collectively. The idea was to convey that Indian steel exports were not affecting the Chinese steel industry, they said.

India's exports of flat products to China since May this year are around 4.6 per cent, which runs the risk of attracting safeguard measures. The main items of export to China are hot rolled coils, plates and galvanised products. The two items specifically mentioned by the Chinese government in its warning are colour-coated and galvanised products.

China imports around 15 million tonnes of flat products. The Chinese government had warned that Indian steel producers must curb steel exports or face safeguard measures.

Some other points to be taken up by the delegation include building a long-term relationship with China and understanding the efforts that led to its phenomenal growth.

Another issue likely to come up for discussion is the special and differential clause in the proposed steel subsidy agreement by the Organisation for Economic Co-operation and Development, on which some support is expected from China.