Abstract: In this paper, the concept and the connotation of metal industries circular economy has elaborated, according to the principles of "1C5R" and analytic hierarchy process to build a cycle of economic development indicator system and assessment model, based on the 1995~2006 Statistical Indicators calculated development index of the metal industry of circular economy, the coordination coefficient and early warning that the current industrial development in Yunnan, that in the light warning state and Moderate development.