Steel industry has a great connection with the strategic superiority of a nation, and is so called ¡§the foundation of industry¡¨. Generally speaking, the development of steel industry makes progress with economy and society of a country at the same time. Both developed and developing country, positively constructed their own steel industry to meet their demand. From 2001, there was a insufficient gap of steel supply existed in the world due to strong demand of Mainland China and consequently made world steel price rise sharply and hit historical high time after time. But the capacity of steel production also followed fast in Mainland China, and finally the central bureau of P.R.C. execute macro-adjustment plan in order to cooling down overheated economy. In 2005 first quarter the steel products oversupply eventually, and the price reverse V-TYPE down. Focus on the enormous chance, the leader steel company of Japan and South Korea entered Mainland China steel industry by strategic alliance with Mainland¡¦s steel companies. Formosa Plastics in Taiwan also schemed to establish an integrated steel mill. The steel market varied so fast and was hard to prospect, Taiwan¡¦s largest steel company -China Steel Corp. operated in such complicated environment, should find a new position to keep its advantageous competition status and do some contribution to its country.