Life　cycle　assessment　(LCA)　can　provide　technical　support　for　environmental　management　in　China.　However,　there　is　no　consensus　on　allocation　method　in　inventory　analysis.　According　to　the　World　Steel　Association　(WAS),　the　environmental　impact,　life　cycle　environmental　load　and　environmental　benefit　of　China＇s　iron　and　steel　industry　should　be　considerd　when　investing　scrap　iron　and　steel.　The　results　of　this　study　show　that　according　to　the　different　allocation　methods,　the　environmental　impact　of　China＇s　iron　and　steel　industry　will　be　divided　into　3　methods:　1)　not　considering　environmental　load　and　environmental　benefit　of　the　environment　(Cut-off　approach);　2)　considering　the　environmental　load　or　environmental　benefits　(Waste　evaluation　method)　and　3)　considering　environmental　load　and　environmental　benefits　(Recycling　benefits　method).　The　environmental　impact　of　Electric　Arc　Furnace　(EAF)　steel　billet　is　raising　by　using　the　waste　evaluation　method　compared　with　that　of　basic　oxygen　furnace　(BOF),　which　are　all　decreased　by　using　the　cut-off　approach.　Recycling　benefits　method　compared　with　Cut-off　approach　that　the　BOF　hot　rolled　steel　coil　(HRC)　environmental　impact,　the　environmental　impact　of　EAF　steel　billet　all　decreased,　and　leading　the　BOF　hot　rolled　steel　coil　environmental　impact　to　a　larger　proportion　of　the　environmental　impact.　©　2017　Trans　Tech　Publications,　Switzerland.