Steel industry is highly connected to a lot of industries. In year 2007 Taiwan steel industry is the third industry, after warfer and electronic industry, which achieved hundred billion NTD in total years¡¦s revenue. Taiwaness downstream industries, unlike Japanese and Korean, are mostly owned and managed by small and medium companies. Steel pipe is a long- hollow shaped material, massively adapted in fluid transportation, such as pretrolem, natural gas, water and steam etc. It is also heavily used in mechanic maching and structure engineering. This study focuses on API ERW carbon steel pipe industry in Taiwan. Analysis of pipe manufacture industry strategy is made upon the basis of theories like value chain, competitive strategy and game theory. Moreover, interviews with professionals and specialists are held to collect experiential wisdom regarding management and core competence ability. In another word, theory analyses together with interviews lead to the conclusion of competitive characteristics. Also, illustration of strategic competitiveness forming in CHS provides a practical example. How to evaluate the core competitive ability in Taiwan API ERW carbon steel pipe industry when facing global competition, that depends on every company¡¦s unique global strategy. To sum up, this study describes and analyzes the current state of API ERW carbon steel pipe industry in Taiwan and summits the proposal of competitive strategies by taking CHS as an example.