ABSTRACTThe development direction of China's steel industry logisticsWang, ChaoDepartment of International Business Graduate School ofWoosuk University China Steel Logistics has some problems such as lack of overall planning, imperfect equipment, low levels of information technology and a lack of expertise. In summary, base on these problems, the recommendations are made in the project to improve the logistics in China’s steel industry. First of all, the defects of logistics in China’s steel, including lack of overall planning and a systematic management, can be resolved by using common logistics. The use of co-purchase, co-marketing and co-management will enable enterprises to reduce the costs in purchasing raw materials and in product sales, and finally rationalize the business operations. Moreover, Co-transport, co-discharge and co-carriage of goods can reduce the costs in transporting and storing materials, which will decrease the overall production costs. Secondly, the establishment of specialized logistics bases can resolve the problem of incomprehensive logistics facilities. Specialized logistics bases can include cargo collection centers, distribution centers, discharge and custody of equipments, information management centers as well as simple processing workshop. Integrated logistics base can improve the efficiency of production and transportation, thereby to reduce the unnecessary work of personnel and vehicles. Thirdly, the development of integrated information network will increase the level of China's steel information technology. The use of POS, EDI, VAN information systems, the enhancement of information exchange and sharing will enable the enterprise logistics management to become more and more effective and efficient, and will promote much more coordination between various departments in enterprise. Finally, problems such as investment overheating and duplicated development in China’s steel industry can be avoided by the establishment of third party logistics. By using third-party, enterprises can concentrate on developing production technology, and improve the enterprise's core competitiveness.