Stelco announces filing of 26th Monitor's Report

HAMILTON, ON, April 25 /CNW/ - Stelco Inc. (TSX:STE) today announced that
the Twenty-Sixth Report of the Monitor in the matter of the Company's Court-
supervised restructuring has been delivered to the service list and will be
filed with the Court this morning. The full text of the Report will be
accessible through a link available on Stelco's Web site once the information
as been filed.
Portions of the Report review previously announced developments. The
Report also provides considerable information on the operations and finances
of the Company. This information includes a production and shipping summary by
business operation for the first quarter of 2005 and compared to the same
period in 2004, a review of market and pricing conditions, cash flow results
for the period January 29, 2005 to April 15 of this year, and cash flow
forecasts for the period April 16, 2005 to July 8, 2005.
Stelco's integrated steel operations produced 1,020,000 net tons in the
first quarter of 2005 compared to 1,133,000 net tons for the same period in
2004. Production for the consolidated business including mini-mill operations
stood at 1,256,000 net tons in the first quarter of 2005 compared to 1,366,000
net tons for the first quarter of 2004.
Shipments from the integrated business totalled 973,000 net tons in the
first quarter of 2005 compared to 1,052,000 net tons for the same period in
2004. Shipments from the consolidated business stood at 1,200,000 net tons for
the first quarter of 2005 compared to 1,266,000 net tons for the same period
in 2004.
As of April 15, 2005, the facility utilization pursuant to the Existing
Stelco Financing Agreement was $114.0 million. During the period January 29,
2005 to April 15, 2005 the total facility utilization of the Existing Stelco
Financing Agreement decreased by $92.8 million.
As summarized in the cash flow forecast appended to the Monitor's Report,
the Report notes that Stelco is forecasting that the total facility
utilization of the Existing Stelco Financing Agreement will decrease by  
$71.4 million to $42.6 million between April 16, 2005 and July 8, 2005.
The Report also notes that Welland Pipe hopes to seek Court approval of a
sale transaction concerning that company's U&O Mill in the near future and
that Welland Pipe's land and buildings have been listed for sale with a
listing price of $4 million. The Monitor also notes that the purchaser of the
Company's idled Plate Mill did not close the transaction for the sale of that
facility on the scheduled date of April 15, 2005. The Report adds that the
Company is evaluating its options in this regard.
The Monitor also discusses the Company's application to extend the stay
period under its Court-supervised restructuring. The stay is currently
scheduled to expire at midnight on April 29, 2005. The Company is seeking to
extend the stay period to July 8, 2005. The application will be heard by the
Court on April 26, 2005.
The Monitor recommends that the Court grant the application on the basis
that the extension is in the interests of all stakeholders. The Monitor notes
its belief that an extension is necessary to maintain operational and
financial stability while the Company continues discussions with stakeholders,
pursues the capital raising process, completes the claims procedure and
develops a restructuring plan.

About Stelco
Stelco Inc. is a large, diversified steel producer. Stelco is involved in
major segments of the steel industry through its integrated steel business,
mini-mills, and manufactured products businesses. This news release may
contain forward-looking information with respect to the Corporation's business
operations, financial performance and conditions. Actual results may differ
from expected results for a variety of reasons including factors discussed in
the Corporation's Management's Discussion and Analysis section of the
Corporation's 2004 Annual Report. To learn more about Stelco and its
businesses, please refer to our Web site at www.stelco.ca.
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