Based on the perspective of industrial chain, is paper constructed a perspective of steel industry international competitiveness evaluation method to analyze the transition of Chinese steel industry's international competitiveness since 1995. The an alysis indicate sthat, in the sample period, the increasing trend of Chinese steel industry's international competitiveness is obvious. However, the factors diverged in different stage. The international competitiveness of Chinese steel industry is lower than the developed countries, such as Germany, the United States,Italy and Japan, while higher than the developing countries like Brazil and Indonesia; The efficiency of energy using is much lower and its dependence on energy is higher than the developed countries; China and other developing countries' supply capacity of service industry for steel industry is lower than such developed countries as America; The service industry's supply capacity for steel industry is declining and the energy industry's support increased slightly. Finally, the support of China's domestic industry for steel industry converged to the developed countries and the developing countries' construction industry's demand contributesed mostly in all.