The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article, published in the November 10, 2005 edition

 

Steel prices are critical question for Stelco

The Hamilton Spectator
(Nov 10, 2005)

Stelco will report its third- quarter earnings today against a background of slowly recovering steel prices.

Whether those prices have recovered enough to allow the struggling giant to report a clear profit, however, remains an open question.

"Steel prices bottomed in August and rose a bit in September," said analyst Jarrett Bilous, of Dominion Bond Rating Service. "Some producers even announced price hikes for October. Things are improving a little bit, but the outlook still remains uncertain in terms of prices."

Steel prices have been a critical question for Stelco during its 22 months of creditor protection. Soaring prices in 2004 and much of this year allowed Stelco to report healthy profits despite being legally insolvent. The downturn in prices following the first quarter of this year have left Stelco relying on asset sales to stay profitable.