Demand exceeds supply in steel market worldwide results in global steel price increasing constantly. In China, the price of iron ore has been up by 70 per cent, which will influence the cost of steel production being up by 22 per cent. However, rises in price of steel products has absolute exceeded price hike of other materials, such as iron ore and coke at present. Profits of steel corporations will be enhanced continuously. Dual restriction from state policy and a lack of original fuel will limit big increases in national productivity. According to analysts' forecasting, those major steel companies that have been listed in stock market, like Baosteel, etc. will achieve over public prediction. Especially, there are some evidences presented that special steel industry will resuscitate in 2004.