UPDATE 1-Vale sees China steel demand revival by early 2011

* Sees demand slowing for 2-3 months before revival

* Sees little impact from China's power usage crackdown

* Dismisses CISA idea that steel should set ore prices

By Ruby Lian and Lucy Hornby

DALIAN, China, Sept 29 (Reuters) - Steel demand growth in China, the world's biggest steel market, will revive by early 2011, Jose Carlos Martins, executive director of ferrous metals at the world's top iron ore miner Vale (VALE5.SA: Quote), said on Wednesday.

"I see demand slowing for two or three months, then growing again. We need to prepare for growth again by the end of 2010 or in early 2011," he told reporters on the sidelines of a conference in Dalian, a major Chinese port.

Chinese steel demand appeared to waver in recent months after the government took steps to dampen the property market and there was a hint of slower expansion in China's car industry.

But Baosteel (600019.SS: Quote), a top Chinese steel mill, said earlier this month it would raise its widely watched prices in October, signalling an apparent tightening in the market.

That may have been because China's steel supply has slipped along with its demand. Government efforts to hit a five year energy-saving target that expires at the end of 2010 have prompted a crackdown on power-hungry steel mills, trimming production in several provinces.