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This paper first outlines Level 2 System with metallurgical microstructure model.It then discusses application of new-generation Level 2 and property prediction software in the new product development,including new steel-grade development and alloy reduction,high-grade product production,production process stabilization,strip/plate shape improvement,and yield increase and so on.Next,it illustrates development and characteristic advantages in the model and software,described below.(1) Worlds Ultra-class models developed by the author in the past 20 years in Germany and USA.(2) Always first-class software in the world even before Metal Pass large scale upgrade to it.This refers to the packages selected as references,such as Tippins Level 2 model improved by Oregon Steel in 5 years with over 4000 modifications! Metal Pass further improvement was mainly to add metallurgical model and intelligent learning,and to integrate advanced software engineering into it.(3) Development suitable for China needs,such as steel grade management.A brief development history and extraction of metallurgical model from Level 2 System for property prediction were also covered.