As a producer of graphite electrodes, which are consumed by steel minimills in their electric arc furnaces, UCAR International Inc. has significant exposure to the difficult steel industry conditions. Softening demand and low prices have forced U.S. steel producers to reduce capacity utilization rates to approximately 72%, thus, affecting pricing and demand for the company's graphite electrodes. UCAR's average price for graphite electrodes has fallen drastically over the past few years, from $3,013 per metric ton in 1998 to $2,323 per metric ton. Furthermore, the devaluation of foreign currencies versus the dollar, particularly the South African rand and the euro, have negatively affected the company's international sales. Prior to the terror attacks on Sept. 11, 2001, Standard&Poor's had
