Choosing enterprise efficiency as a perspective and taking energy consumption as an important variable, this paper studies the technical efficiency of Chinese listed Iron and Steel enterprises in period 2002~2008 by using stochastic frontier analysis. It analyzes those factors such as enterprise scale, financial leverage, agent cost and share structure etc., which may affect enterprise efficiency. The results are as following: first, as the enterprises attach great importance to energy saving, the energy consumption per ton of steel is cut down dramatically, thus the coefficient of elasticity of energy consumption is positively correlated with output insignificantly. Second, excess capacity and investment are very serious in Chinese Iron and Steel industry, which leads to capital using inefficiency. Third, the relationship between scale and enterprise efficiency is inverted Ushaped, which means there is an optimal scale interval in Iron and Steel enterprises. Financial leverage, agent cost and share structure are positively correlated with enterprise efficiency.