Abstract: Based on the data of energy consumption and steel production of Chinese steel industry from 1995~2010， factor decomposition was conducted to analyze energy consumption by using logarithmic mean Divisia index method， including energy consumption structure， energy consumption per ton of crude steels and production. The results showed that energy consumption increased 3596700tce in total from 1995 to 2010. The variety steel production contributed the biggest part of the steel industry energy consumption， accounting for 15750%. The energy consumption per ton of crude steel took second place on the contribution of the energy consumption， accounting for -5753%. The last effect part was energy structure， which only contributed for 003% of the energy consumption. Thus， it is a key method to realize energy conservation by decreasing the energy consumption per ton of crude steels. There was a drop of 40435kgce/t of the energy consumption per ton of crude steels from 1995 to 2010， among which 2937% and 7063% of the drop came from steel ratio coefficients and process energy consumption， respectively.

Key words: steel industry, energy consumption, logarithmic mean Divisia index method, steel production, energy consumption per ton of crude steel, energy consumption structure