Iron and steel industry plays a key role in China national economy. To find the direction of restructuring and development model changing, this paper reviews the development of China iron and steel industry in the 10th five-year plan, through history study and contrast study. The results indicate that there is a huge gap between China and advanced world levels. To finish the llth five-year plan, China need to develop the Circular Economy. At last, this paper gives some advices about China iron and steel industry cycle economy development.