Abstract: A label placement algorithm using clustering and bipartite graph maximum-weighted matching method is put forward to solve the serious label overlapping problem that the present algorithms cannot perfectly deal with in element drawings of steel structure. This algorithm divides the placement target into 3 sub-targets as well as divides the whole element drawing into several sub-regions according to their gathering characteristics. For each sub-region, each sub-target can be solved in sequence by recursion and bipartite graph maximum-weighted matching method. The test result shows that the algorithm can effectively avoid the serious overlapping problem of labels with high execution performance and high usability.