Abstract: A rational process of integral iron and steel production can beconstituted by the four processes-full oxygen blast furnace, decarbonizationof granulated pig iron, electric furnace of steelmaking and horizontal continuous casting. This procese is especially suitible for small scale works. Because it can give high technical index and solve the technical difficulty of steelmaking with small scale. In addition, a effective energy balance in the interior of integral works is formed due to the higher calorific gas produced from blast furnace and using of effective power station.