LONDON, August 24 /PRNewswire/ --     European steel producers have reported record profits in 2007, while
margins in the US steel market have fallen. This is according to Integer
Research's latest publication that gathers quarterly and interim financials
for 60 leading global steel producers, the Steel Financial Bulletin.

"Global demand and prices for steel remain at historic levels into 2007,"
says Integer Research Director, Philip Radbourne. "For example some European
companies, SSAB, Salzgitter and voestalpine have shown record operating and
net profit margins in 2007. This is due to the strong positive global
economic trend that has persisted into 2007."

"However, as can be seen in the Steel Financial Bulletin, it was not as
easy for the Asian and US producers," says Integer Research analyst, Andrea
Valentini. "In the US, the economic momentum has slowed, triggered by the
crisis in the US real estate market. The softer US economy meant that stocks
have built up, particularly of flat steel sheet. Consequently margins for
companies like Nucor and AK Steel have fallen. Margins had also been squeezed
by imports and prices; however imports have recently dropped, leading to a
healthier business environment. This has resulted in a stronger performance
in the US steel market in Q2 2007."

Radbourne continues, "In China the cost pressure among some players, and
pressure on prices, hit margins for many of the steel producers early in
2007. This was despite the continued strong demand. The only companies that
have been able to sustain their profitability are those producing quality
flat products, such as Angang, Tangshan and Shougang. They have been able to
sustain their profit margins because strong economic performance in China.
This has underpinned demand for flat steel products used in a range of
consumer goods."

In Japan, Nippon Steel Corp. and JFE Holdings Inc have both been able to
post strong quarterly profits margins, helped by higher steel prices. Nippon
Steel, the world's second largest steel producer has benefitted from strong
worldwide sales of Japanese cars, helping its pre-tax profit increase by 21%
year-on-year to Yen148.7 billion (US$1.26 billion). JFE, sold nearly half its
steel products to customers in South Korea, Thailand and China However, both
Sumitomo Metal Industries Ltd. and Kobe Steel Ltd., which rely less on
booming car sheet production than the bigger two rivals have seen their
margins squeezed over the last few months.

"South Korea's POSCO announced a 55% increase in its quarterly net
profits in Q2 2007, as it saw rising demand from car companies and
shipbuilders," says Radbourne. "Arcelor Mittal also reported a strong
performance. It saw a 50% increase year-on-year in net profits, based on its
pro-forma 2006 results. However, it will be interesting to see how Arcelor
Mittal performs, once we are able to look at the company on a like-for-like
basis through next year. It will also be interesting to see, in future
editions of the Financial Bulletin, whether the company has been able to gain
from consolidation."

Integer Research:
    Kingsley Maunder
    +44-207-503-1265