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In 2012, China's large and medium-sized iron and steel enterprises realized profits of 1.581 billion yuan, down 98.22%. Annual cumulative loss of 23 enterprises, an increase of 15 over the same period last year, the loss amounted to 28.75%, the amount of loss of 28.924 billion yuan, an increase of 7.39 times.Degree rise in steel prices from October 2012 to December so that the steel industry is very exciting, but it did not last long, upward dash imported ore prices squeezed corporate profits, the Chinese steel industry can only continue struggling in low-profit.