<SEC-DOCUMENT>0001292814-15-000427.txt : 20150413
<SEC-HEADER>0001292814-15-000427.hdr.sgml : 20150413
<ACCEPTANCE-DATETIME>20150302195114
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001292814-15-000427
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20150302

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATIONAL STEEL CO
		CENTRAL INDEX KEY:			0001049659
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		RUA LAURO MULLER
		STREET 2:		116 36 ANDAR
		CITY:			RIO DE JANEIRO RJ BR
		STATE:			D5
		ZIP:			00000
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<TYPE>CORRESP
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<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 12pt 324pt" align=right><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">March 2, 2015</FONT></P>

<P style="MARGIN: 0cm 0cm 12pt"><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Via EDGAR Transmission</FONT></U></B></P>

<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Mr. Terence O&#8217;Brien<BR>Branch Chief <BR>Division of Corporation Finance<BR>United States Securities and Exchange Commission<BR>100 F Street, N.E.<BR>Washington, D.C. 20549-4631</FONT></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 0pt 72pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">National Steel Company<BR>Form 20-F for the fiscal year ended December 31, 2013<BR>Filed April 30, 2014<BR>Response Letter dated January 26, 2015</FONT></P>

<P style="TEXT-INDENT: -1.1pt; MARGIN: 0cm 0cm 0pt 72pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">File No. 1-14732<BR>Response to Staff Comment Letter dated February 10, 2015</FONT></P>

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<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Dear Mr. O&#8217;Brien:</FONT></P>

<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Companhia Sider&#250;rgica Nacional (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Company</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;) received a comment letter from the staff of the United States Securities and Exchange Commission (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Staff</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;) on February 10, 2015 regarding the Company&#8217;s response, dated January 26, 2015, to the Staff&#8217;s December 23, 2014 letter, concerning the Company&#8217;s annual report on Form 20-F filed on April 30, 2014 (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">2013 Form 20-F</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;).&nbsp; This letter provides the Company&#8217;s responses to the Staff&#8217;s comments. For your convenience, we have reproduced below in italics the Staff&#8217;s comments numbered 1 through 4 and have provided responses immediately below such comments. All page numbers referred to herein are to the 2013 Form 20-F.</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 1.</FONT></B></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 12pt"><I><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Note 9-Investments, page FS-30</FONT></U></I></P>

<P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 12pt"><I><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">a) Events in 2013</FONT></U></I></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">1)</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note your response to comment 1 from our letter dated December 23, 2014. In future filings, please disclose the information you provided related to how you determined the fair value of your remaining investment in TLSA</FONT></I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">.</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 1. </FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note the Staff&#8217;s comment and will include the requested information in future filings.</FONT></P>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio <BR>Financial Faria Lima Center</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 2.</FONT></B></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman">b) Changes in investments in joint ventures, associates, and other investments, page FS-31</FONT></U></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">1)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note your response to comment 2 and have the following additional comments. </FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 12pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please more fully explain the nature of the amounts you have identified as &#8220;reclassifications.&#8221; In this regard, we note that paragraph 28 of IAS 28 indicates that the investor&#8217;s share in the joint venture&#8217;s gains or losses resulting from transactions between and entity and its joint venture is eliminated. We therefore do not understand your use of the term &#8220;reclassification&#8221; and how you have appropriately eliminated the resulting gains and losses specified in paragraph 28 of IAS 28. Please explain. </FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 12pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Reconcile these &#8220;reclassified&#8221; amounts to the information you have presented in Note 19. </FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 12pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please explain why your rollforward of your investment balance on page FS-31 includes the 542,711 total share of profits of joint ventures and associate if this amount, as you appear to indicate in your disclosures, includes your share in the joint ventures&#8217; gains and losses resulting from transactions with the joint ventures; and </FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 12pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please tell us how you will revise future disclosures to better explain your accounting. </FONT></I></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 2. </FONT></B></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Elimination of transactions with joint ventures</FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">IAS 28 requires the elimination of gains and losses resulting from downstream and upstream transactions.&nbsp; However, the Standard does not specifically address the treatment of revenue derived from transactions with equity-method investees and whether that revenue should be eliminated from the consolidated financial statements. </FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Therefore, based on the concepts described in &#8220;iGAAPs&#8221; literature published by Deloitte and KPMG, the Company has elected in its accounting practices to eliminate relevant upstream and downstream transactions as follows:</FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman">Upstream transactions: the Company eliminates the profit margin obtained by MRS, a joint-venture that provides railway transportation services, in connection with services rendered to CSN. It is important to point that the Company&#8217;s investment in MRS is strategic in nature, as it is aimed at guaranteeing access to long-term transportation services at a competitive cost. The services provided by MRS to CSN are usually equivalent to the Company&#8217;s proportional interest in MRS. </FONT></P></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio <BR>Financial Faria Lima Center</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

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<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Downstream transactions: the Company eliminates interest expenses recognized at CSN against its</FONT><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman"> 60% share on interest income recognized by Namisa on advances for port services and ROM sales agreement that are provided by CSN to Namisa.</FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">While IAS 28 (2011:26 (previously IAS 28 (2003):20) indicates that many of the procedures appropriate for the application of the equity method are similar to consolidation procedures,&nbsp; the Company has elected to apply IFRS 10: B86(b) and eliminate its share of the finance income with a corresponding adjustment to its share of Namisa&#8217;s profit and loss.</FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The nature of the elimination and accounting records are presented as follows:</FONT></P>

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   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Cost of goods sold (P&amp;L)</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(137,418)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Margin obtained by MRS on rendering railway transportation services to the Company. Approximately 27% of operational margin on total revenue</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="22%">

   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Share of profit of joint ventures (P&amp;L)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="24%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Financial result (P&amp;L)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(624,096)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Our 60% share on interest income recognized by Namisa on advances made to the Company for port services and ROM sales&nbsp;agreement</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="22%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Income Tax (P&amp;L)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="24%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Share of profit of joint ventures (P&amp;L)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">258,914</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Effect of taxes on the amounts above</FONT></P></TD></TR></TABLE></DIV>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">As explained above, these margins are eliminated against share of profit of joint ventures (P&amp;L) because the transactions were already realized, therefore there is no effect on the Company&#8217;s balance sheet and as a result the Company has termed these transactions as &#8220;Reclassifications.&#8221; However the Company agrees that &#8220;Elimination&#8221; would be a better term for these transactions and proposes to adjust its disclosure in future filings.</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Reconciliation to Note 19</FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The elimination amounts on transactions with joint ventures MRS and Namisa are reconciled to Note 19 as follows: </FONT></P></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Escrit&#243;rio Central</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio <BR>Financial Faria Lima Center</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

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<P style="MARGIN: 0cm 0cm 0pt"><B><FONT style="FONT-SIZE: 14pt" lang=EN-US face="Times New Roman"></FONT></B>&nbsp;</P>

<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=right><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">MRS</FONT></P>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp; </FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">MRS - in thousands of reais</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Purchases, gross, presented on COGs (Note 19)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">555,261</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(-) Sales taxes</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(51,345)</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(=) Purchases, net of taxes</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">503,916</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">% margin eliminated &#8211; approximately 27%</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt" align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">137,418</FONT></B></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Purchases after profit eliminations presented on COGs</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">417,843</FONT></P></TD></TR></TABLE></DIV>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -18pt; MARGIN: 0cm 0cm 12pt 36pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Namisa</FONT></P>

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<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Namisa &#8211; in thousands of reais</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Interest expense on prepayment CSN versus Namisa</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">1,040,160</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(-) Elimination of 60% CSN share on Namisa equity</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">624,096</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(-) Other indirect investments of Namisa</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">21,608</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="64%">

   <P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(=) Interest expense, net of elimination (Note 19)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="36%">

   <P style="TEXT-ALIGN: center; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt" align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">394,456</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">In the case of transactions with Namisa, the Company presented its financial expense net of elimination. On the other hand, MRS&#8217;s expenses were presented on a gross basis. The Company proposes to present expenses for both Namisa and MRS on a net basis in future filings.</FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Note 19 also presents transactions classified as sales and purchases with Namisa and CBSI. The Company has not included the elimination amounts of these transaction margins because the amounts involved were immaterial as the transaction margins were less than 5%.</FONT></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Investment balance</FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company&#8217;s rollforward of investments includes the amount of R$542,711 thousand (R$670,777 thousand total, which includes the R$128,066 thousand share of profits regarding TLSA until November 2013, as presented in the Company&#8217;s January 26, 2015 response letter) as the assets involved in the upstream and downstream transactions were not included in the balance sheet of either the Company or the joint venture, because these assets were sold to third parties outside of the CSN group. In other words, there are no unrealized profits in these transactions, therefore the elimination was presented only in the income statements, as discussed above. Please note that before elimination the results of these upstream and downstream transactions were recorded in COGs and financial results in the Company&#8217;s income statements. The accounting records are demonstrated as follows:</FONT></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt">&nbsp;</P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt">&nbsp;</P></DIV>

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<H1 style="TEXT-ALIGN: center; LINE-HEIGHT: 10pt; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 18pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 7pt"><FONT style="FONT-SIZE: 9pt" face="Times New Roman">Companhia Sider&#250;rgica Nacional</FONT></FONT></B></H1></TD></TR>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 8pt" lang=EN-US face="Times New Roman">4</FONT></P></TD></TR>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><B><FONT face="Times New Roman"></FONT></B>&nbsp;</P><FONT style="FONT-SIZE: 8pt">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Escrit&#243;rio Central</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio <BR>Financial Faria Lima Center</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman"></FONT>&nbsp;</P></FONT></TD>

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<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" rowSpan=2 width="21%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Accounting events</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="79%" colSpan=5>

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Accounting records - Debit (Credit)</FONT></B></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Investment balance</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Cost of goods sold (P&amp;L)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Share of profit of joint ventures (P&amp;L)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Financial result (P&amp;L)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Income Tax (P&amp;L)</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="21%">

   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Equity pick-up</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">542,711</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(542,711)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="21%">

   <P style="PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Elimination MRS to COGs</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(137,418)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">90,696</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">46,722</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="21%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Elimination Namisa to Financial Results</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">411,904</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(624,096)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">212,192</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="21%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Total</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">542,711</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(137,418)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(40,111)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(624,096)</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">258,914</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="49%" colSpan=3>

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Adjusted by</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="49%" colSpan=3>

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Elimination of TLSA&#8217;s profit</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(120,102)</FONT></P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="49%" colSpan=3>

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Other</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">2,075</FONT></P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="49%" colSpan=3>

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Total presented as equity pick-up on CSN income statement (Note 9(b))</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(158,138)</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD></TR></TABLE></DIV>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Future Disclosure</FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">In future disclosures the Company will present the reconciliation tables above, including a disclosure on the nature of the eliminations and a reconciliation with the amounts presented in the related parties transactions note. If there are any unrealized profits in the transactions on the date of the financial statements, the Company will present a table indicating the unrealized profit amounts.</FONT></P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 3.</FONT></B></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">1)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note your response to comment 3. Please provide this clarifying information in your future filings. </FONT></I></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 3. </FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note the Staff&#8217;s comment and will include the requested information in future filings.</FONT></P>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT face="Times New Roman">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio <BR>Financial Faria Lima Center</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 4.</FONT></B></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman">Note 10- Property, Plant, and Equipment, page FS-36</FONT></U></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">1)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note your response to comment 5. Please provide this clarifying information in your future filings. </FONT></I></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 4.</FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note the Staff&#8217;s comment and will include the requested information in future filings.</FONT></P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company hereby acknowledges that:</FONT></P>

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<LI style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">the Company is responsible for the adequacy and accuracy of the disclosure in the filing;</FONT>

<LI style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and</FONT>

<LI style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</FONT> </LI></UL>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">If you have any questions or require any additional information with respect to the above, please do not hesitate to contact Andrew J&#225;nszky at +55-11-3927-7701, Felipe Camara at +55-11-3927-7716 or Maria Beatriz Martinez Alves at +55-11-3049-7537.</FONT></P></DIV>

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   <P style="PAGE-BREAK-AFTER: avoid; MARGIN-TOP: 0cm; MARGIN-BOTTOM: 12pt; MARGIN-RIGHT: 0cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Sincerely,</FONT></P>

   <P style="PAGE-BREAK-AFTER: avoid; MARGIN-TOP: 0cm; MARGIN-BOTTOM: 12pt; MARGIN-RIGHT: 0cm"><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">/s/ Rog&#233;rio Leme Borges dos Santos_<BR></FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Companhia Sider&#250;rgica Nacional <BR>By: Rog&#233;rio Leme Borges dos Santos</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"><BR></FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Title: Controller and Principal Financial Officer</FONT></P></TD></TR></TABLE>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT lang=EN-US face="Times New Roman">Cep: 04538-132</FONT><FONT lang=EN-US face="Times New Roman"> </FONT><FONT lang=EN-US face="Times New Roman">- S&#227;o Paulo - SP</FONT></P>

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