China issued the developing policy of steel industry on 2005. This policy point out a loadmap for development of chinese steel industry. For example, the main content of the policy is that steel industry must be developed along east coastal area, and must improve the concentration ratio of steel industry in upbringing major company at steel industry. Therefore, this article studied how the policy have an effect on the real steel industry in China because passed about five years after issuing the policy. In conclusion, if look at a result of studied work, it is as follows. Firstly, the concentration ratio of chinese steel industry is rising, but is not the level that can achieve an economies of scale. Secondly, if look at a distribution of the industry, the policy achieved the effect because a manufacturing plant of the industry was concentrated along eastern coastal area. But it can not say that achieved an effect of policy, because imbalance between coast area is extreme, for example, southern area have not big steel company yet. Finally, competitiveness of steel industry after issuing the policy is as follows. Firstly, competitiveness of steel industry is apparently risen from the side of market share. but overall competitiveness including an earning rate and market share etc. is little different in comparison with its previous of policy issuing, rather partially fell than its previous of policy.