Abstract: In 2011, international situation was unpredictable,China's economic development growed slowly, the steel industry also experienced in a serious situation. In this paper, in view of the steel industry situation in 2011, the author analyzes supply and demand of iron ore and exploration of iron ore, resource safeguard, iron ore production, import of iron ore and so on, prospecting for supply and demand situation of iron ore in 2012. On the basis of the above analysis, the author puts forward to policy suggestions of development and utilization of iron ore resources.