The development of steel industry and the present situation of restructuring of Chinese steel enterprises are reviewed in this paper . The analysis and integration of steel manufacturing process and the direction of technological progress are described. The production processes for different steel products are discussed and the structure and mode of steel plants and investment decision are prospected. It is pointed out that market competitiveness and sustainable development are the time´s topic of steel industry. In the 21st century, the functions of steel production process will move towards following targets：
——For metallurgical function - producing new generation steel products based on low energy consumption, low material consumption and high efficiency and low specific investment cost.
——For energy conversion function - forming the industrial ecological chain, even converting into an advanced energy.
——For wastage treatment function - realizing environment friendliness.
Steel plants will be developed into two typical modes： the city peripheral steel plant and the steel plant located in the ecological industry zone.