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Exhibit 18.1

April 28, 2004

International Steel Group Inc.
3250 Interstate Drive
Richfield, Ohio 44286

Ladies and Gentlemen:

We have been furnished with a copy of the quarterly report on Form 10-Q of
International Steel Group Inc. and subsidiaries (the Company) for the three
months ended March 31, 2004, and have read the Companys statements contained
in Note 3 to the consolidated financial statements included therein. As stated
in Note 3, the Company previously accounted for about 20% of its inventories
using the last-in, first-out (LIFO) method and effective January 1, 2004 the
Company changed its method of accounting for substantially all other
inventories from the first-in, first-out (FIFO) method to the LIFO method and
states that the newly adopted accounting principle is preferable in the
circumstances because the LIFO method of valuing inventories more closely
matches current costs and revenues in periods where prices of goods are
increasing significantly.

Also as stated in Note 3, the Company changed its method of accounting for LIFO
inventory by reducing the number of LIFO pools from a single pool at each
manufacturing facility to a single pool for substantially all inventories and
states that this newly adopted accounting principle is preferable in the
circumstances as the Company plans to reallocate the supply of semi-finished
materials to its finishing facilities and is considering how to best reallocate
certain raw materials among its steel producing activities. The Company
believes that having a single LIFO pool for substantially all inventories is
preferable because a single LIFO pool eliminates the potential for changes in
inventory value solely because of movement of inventory among manufacturing
facilities.

Further, as stated in Note 3, the Company changed its method of applying LIFO
to interim reporting from an allocation of a projected annual LIFO cost to a
specific quarterly calculation based on year to date amounts and states that
the newly adopted method of interim accounting for LIFO is preferable as it
results in a more appropriate matching of costs incurred with revenue generated
during the corresponding interim period.

In accordance with your request, we have reviewed and discussed with Company
officials the circumstances and business judgment and planning upon which the
decision to make these changes in the methods of accounting were based.

We have not audited any financial statements of the Company as of any date or
for any period subsequent to December 31, 2003, nor have we audited the
information set forth in the aforementioned Note 3 to the consolidated
financial statements; accordingly, we do not express an opinion concerning the
factual information contained therein.

With regard to the aforementioned accounting changes, authoritative criteria
have not been established for evaluating the preferability of one acceptable
method of accounting over another acceptable method. However, for purposes of
the Companys compliance with the requirements of the Securities and Exchange
Commission, we are furnishing this letter.

Based on our review and discussion, with reliance on managements business
judgment and planning, we concur that the newly adopted methods of accounting
are preferable in the Companys circumstances.

Very truly yours,

/s/ KPMG LLP

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