Densely arranged underground steel tube system (DAUSTS) is a new kind of structure which can be usually used in constructing spacious underground structures such as metro stations. During the construction, the steel tube is horizontally forced into soil by jacks through a vertical well. The tube may generate local buckling phenomena under the compression force if the parameter of the tube and soil meet the buckling condition. In the paper, the soil perturbation mode and the deformation of the tube before local buckling are both analyzed, considering the possibly concerned buckling failure modes in practical engineering, the confine effect of the soil and interaction between the tubes. A nonlinear buckling analysis on tube-wall of the steel tube located in the most unfavorable place is developed by the arc-length method of the finite element method (FEM), considering the effect of the large deformation. The results of the numerical simulation matches very well to the real application and the key results of the analysis can be used as an estimation principle for the stability of the tube.