BERLIN (Reuters) - The issue of overcapacity in the steel sector and other industries is likely to come up in the communique of the upcoming G20 summit in China, a German government official said on Tuesday.

China produces half the world's 1.6 billion tonnes of steel and has struggled to decrease its estimated 300 million tonne overcapacity, and rising prices have given companies there an incentive to boost production for export.

(Reporting by Gernot Heller; Writing by Michelle Martin; Editing by Madeline Chambers)