High functionality given to steel products results in incremental environment loads at the steelmaking stage. However, at the stage of utilization, high-functional steel products prove more environment friendly than their conventional counterparts in many cases. Therefore, evaluation on contribution of steel products to environmental improvement requires an integrated approach that considers the product over its entire life cycle — life cycle assessment (LCA). This paper discusses the relationship between the improvement of steel products performance and environmental impact from the entire life cycle perspectives. The LCA method to calculate and assess contribution of high-functional steel products during the life cycle to environmental improvement is explained. Two case studies of Baoshan Iron & Steel Co., Ltd. (Baosteel for short) are given to show that LCA is a scientific and systematic method for eco-materials evaluation or eco-design: 1)in a power transformer, using silicon steel B30P110 to replace B30G130 can reduce carbon dioxide emissions in the region of 15.1% over the life cycle of the power transformer; 2)tinplate steel of Baosteel for two-piece steel cans experienced six times thickness reduction from 0.280 to 0.225mm, which results in 14.5% emission reduction over the life cycle of two-piece steel cans. It is a systematic and scientific method for evaluating on products environmental performance from life cycle perspective.