Abstract:China’s large and mediumsized steel mills are generally located in cities, and with the rapid developing of cities in recent years, the contradictions between the steel mills and new requirement of urban development are more and more obvious, including the environment, energy, socioeconomic and other aspects. And the survival space of steel mills in cities is squeezed. By analyzing the relationship of urban mills and cities, including social economy, upstream and downstream industries, energy resources and environmental quality, the main contradiction between them was sorted out, which can provide basis for the study of how to transform and upgrading steel mills in order to fit for the rapid development of cities.