Stelco Inc.’s court-appointed Monitor has filed its thirty-third report regarding the company's Court-supervised restructuring. The Report provides updated information regarding meetings held with shareholder groups, the lack of consensus among shareholder groups, current industry conditions and their impact on Stelco’s financial results, and Stelco’s request for extension of the stay period.

The Monitor arranged and held meetings with representatives of stakeholder groups to discuss, among other things, views on moving the restructuring process forward. At the beginning of those meetings, Stelco management reviewed the company's updated financial forecast.

Based on the meetings, the Monitor reports that most stakeholders expressed the view that it was unlikely that any consensus on the substance of a CCAA plan outline could be reached by July 18, 2005 and that, in general terms, the next step should be the production of a plan leading to a vote. The Monitor notes that there is no consensus on the best party to bring forward a plan or on the content of such a plan. Noting that the company has indicated its intention to file a plan outline on July 15, 2005, the Report recommends that the Monitor arrange and direct meetings between the company and stakeholders beginning the week of July 18, 2005 for the purpose of discussing Stelco's plan outline.

The Monitor notes that the North American steel industry continues to remain soft in terms of price and demand. The Report adds that the current spot market price for hot roll black coils, Stelco's largest product category, has declined approximately 9.1% to approximately $500/net ton since June 21, 2005. The Monitor notes, as it has before, that Stelco's future financial results will be highly dependent on the direction of the company's input costs and the strength of North American steel markets.

The Monitor recommends that the company's request for an extension of the stay period until September 9, 2005 be granted, stating that an extension is in the interest of all stakeholders in order to allow discussions concerning Stelco's plan outline, and to provide time for the subsequent development and filing of a formal restructuring plan. The extension would also allow parties to complete the claims procedure, and would also help Stelco t maintain its operational and financial stability.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills, and manufactured products businesses.