For much of the past two years China imported steel as its economy sizzled, the Wall Street Journal reported Thursday.

But efforts to cool its economy and newly built production capacity have turned the world's most populous nation into a steel exporter. Add to that increasing steel-making capacity outside China and the economics of the critical commodity could radically change.

Swiss bank UBS says the growth in China's domestic demand for steel recently has been rising only about 5 percent a month compared with year-earlier periods, after average monthly increases of 26 percent in 2002, 2003 and early 2004.

Meanwhile, Chinese steel production is estimated to grow 22 percent this year and another 14 percent next year.