Through the analysis of the general situations, features, existing problems and strategy ideas of domestic steel industry and Xining Special Steel’s development, a train of thought was put forward that developing the circular economy on the basis of Xining Special Steel’s resources: “Three factors and One goal” . that the goal of “resource recycling” would be realized by resource reusing, old stuff reusing and waste reducing. Relying on the progress in science and technology, the level of cleaner production of steel industry should be improved, by greater effort to research and exploit industrial wastes,,better economic yield, lower resource consumption and less environmental pollution. Then the interactive development will be achieved between circular economy industries and the principal industry of steel.