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                                 Exhibit 4.18

                   SEVENTH AMENDMENT TO AMENDED AND RESTATED
                 RECEIVABLE AND INVENTORY FINANCING AGREEMENT

  THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED RECEIVABLE AND INVENTORY
FINANCING AGREEMENT (this "Amendment") is made and entered into as of the 1st
day of December, 1997, between SHEFFIELD STEEL CORPORATION, f/k/a HMK INDUSTRIES
OF OKLAHOMA, INC., successor by merger to SHEFFIELD STEEL CORPORATION-SAND
SPRINGS, f/k/a SHEFFIELD STEEL CORPORATION and SHEFFIELD STEEL CORPORATION -
JOLIET (the "Company"), and NATIONSBANK, N.A., a national banking association,
formerly known as NationsBank, N.A. (South) and also formerly known as
NationsBank of Georgia, N.A. (the "Lender").

                             W I T N E S S E T H :
                             - - - - - - - - - -

  WHEREAS, heretofore, the Company and its predecessors and Affiliates, and the
Lender, made and entered into a certain Receivable and Inventory Financing
Agreement, dated as of January 16, 1992 (hereinafter, as previously amended, the
"Agreement"), pursuant to which the Lender agreed to certain financial
accommodations on the terms and conditions stated therein; and

  WHEREAS, the Company and the Lender desire to amend the Agreement as set forth
herein.

  NOW, THEREFORE, in consideration of the foregoing premises, and other good and
valuable consideration, the receipt and legal sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

  1.  All capitalized terms used herein and not otherwise expressly defined
herein shall have the respective meanings given to such terms in the Agreement.

  2.  The Agreement is amended as follows:

      (a)  Delete the definitions of "Banking Day" and "Prime Rate" contained in
Section 1.1 and replace them with the following:

      "Banking Day" shall mean a day for dealings by and between banks
  (excluding Saturday, Sunday and any day which shall be a legal holiday in the
  City of Atlanta, Georgia, or a day on which banking institutions in the City
  of Atlanta, Georgia are authorized to close) and, if relating to a Eurodollar
  Rate Loan, on which dealings are carried on in the London interbank market.

      "Prime Rate" shall mean the rate of interest announced by the Lender in
  Atlanta, Georgia, from time to time as its "Prime Rate". The Prime Rate shall
  be adjusted on the first day of each month based on the Prime Rate in effect
  at the

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  close of business on the last Banking Day of the immediately preceding
  calendar month.

     (b) Add the following new definitions in appropriate alphabetical order to
Section 1.1:

          "Applicable Margin" shall mean an amount determined in accordance with
     Annex I attached hereto based upon the Company's ratio of EBITDA to Cash
     Interest as of the date of the determination. Adjustments to the Applicable
     Margin shall be effective as of the first day of the calendar month after
     the Lender's receipt of the Company's financial statements as of the last
     day of each fiscal quarter (commencing with the financial statements for
     the fiscal quarter ending on or about October 31, 1997) during each fiscal
     year in conformance with Section 8.3(a), together with the officer's
     certificate described in Section 8.3(a) setting forth the calculations
     necessary to determine the ratio referred to above. The calculations of the
     Applicable Margin made at fiscal year end shall be subject to adjustment
     upon the Lender's receipt of the Company's audited financial statements in
     conformance with Section 8.3(b). In the event the Company fails to timely
     provide the financial statements and certificates referred to above, and
     without prejudice to any additional rights under Section 11, the maximum
     Applicable Margin shall apply to all Eurodollar Rate Loans and Prime Rate
     Loans until the first day of the calendar month after the Lender's receipt
     of such financial statements and certificates, unless the Lender has agreed
     to extend the time for delivery of such financial statements.

          "Dollar" and "$" shall mean freely transferable United States dollars.

          "Eurodollar Rate" shall mean, with respect to any Eurodollar Rate Loan
     for the Interest Period applicable thereto, a simple per annum interest
     rate determined pursuant to the following formula:

          Eurodollar Rate =            Interbank Offered Rate
                            --------------------------------------------
                               1 - Eurodollar Reserve Percentage

The Eurodollar Rate shall be adjusted automatically as of the effective date of
     any change in the Eurodollar Reserve Percentage.

          "Eurodollar Rate Basis" shall mean a simple interest rate per annum
     equal to the Eurodollar Rate plus the Applicable Margin.
                                  ----

          "Eurodollar Rate Loan" shall mean any Loan which bears interest at the
     time in question based on the Eurodollar Rate Basis.

          "Eurodollar Reserve Percentage" shall mean, for any day, that
     percentage (expressed as a decimal) which is in effect from time to time
     under Regulation D of the Board of Governors of the Federal Reserve System,
     as such

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     regulation may be amended from time to time or any successor regulation, as
     the maximum reserve requirement (including, without limitation, any basic,
     supplemental, emergency, special, or marginal reserves) applicable to any
     member bank with respect to Eurocurrency liabilities as that term is
     defined in Regulation D (or against any other category of liabilities that
     includes deposits by reference to which the interest rate of Eurodollar
     Rate Loans is determined), whether or not the Lender has any Eurocurrency
     liabilities subject to such reserve requirement at that time. Eurodollar
     Rate Loans shall be deemed to constitute Eurocurrency liabilities and as
     such shall be deemed subject to reserve requirements without benefit of
     credits for proration, exceptions or offsets that may be available from
     time to time to the Lender.

          "Interbank Offered Rate" shall mean, with respect to any Eurodollar
     Rate Loan for the Interest Period applicable thereto, the average (rounded
     upward to the nearest one-sixteenth (1/16) of one percent) per annum rate
     of interest determined by the office of the Lender then determining such
     rate (each such determination to be conclusive and binding) as of two
     Banking Days prior to the first day of such Interest Period, as the
     effective rate at which deposits in immediately available funds in Dollars
     are being, have been, or would be offered or quoted by the Lender to major
     banks in the applicable interbank market for Eurodollar deposits at any
     time during the Banking Day which is the second Banking Day immediately
     preceding the first day of such Interest Period, for a term comparable to
     such Interest Period and in an amount comparable to the amount of the
     Eurodollar Rate Loan. If no such offers or quotes are generally available
     for such amount, then the Lender shall be entitled to determine the
     Interbank Offered Rate by estimating in its reasonable judgment the per
     annum rate (as described above) that would be applicable if such quotes or
     offers were generally available.

          "Interest Period" shall mean, in connection with any Eurodollar Rate
     Loan, the term of such Loan selected by the Company or otherwise determined
     in accordance with this Agreement, which may have a duration of one (1),
     two (2), three (3) or six (6) months. Notwithstanding the foregoing,
     however, (i) any applicable Interest Period which would otherwise end on a
     day which is not a Banking Day shall end on the next succeeding Banking Day
     unless such Banking Day falls in another calendar month, in which case such
     Interest Period shall end on the next preceding Banking Day, (ii) any
     applicable Interest Period which begins on a day for which there is no
     numerically corresponding day in the calendar month during which such
     Interest Period is to end shall (subject to clause (i) above) end on the
     last day of such calendar month, and (iii) no Interest Period shall extend
     beyond the maturity of the Loans or such earlier date as would interfere
     hereunder with the repayment obligations of the Company.

          "Prime Rate Basis" shall mean a simple interest rate per annum equal
     to the Prime Rate plus the Applicable Margin.
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          "Prime Rate Loan" shall mean any Loan which bears interest at the time
     in question based on the Prime Rate Basis.

     (c)  Delete Section 2.2 and replace it with the following:

          2.2  INTEREST.

               (a)  Choice of Interest Rate, Etc. Each Loan shall, at the option
     of the Company, be made as a Prime Rate Loan or a Eurodollar Rate Loan.
     Each Prime Rate Loan shall bear interest at the Prime Rate Basis. Each
     Eurodollar Rate Loan shall bear interest at the applicable Eurodollar Rate
     Basis. Any notice given to the Lender in connection with a requested Loan
     hereunder shall be given prior to 12:00 noon (Eastern Time) in order for
     such Banking Day to count toward the minimum number of Banking Days
     required. If the Company fails to give the Lender timely notice of its
     selection of a Eurodollar Rate Basis, or if for any reason a determination
     of a Eurodollar Rate Basis for any Loan is not timely concluded, the Prime
     Rate Basis shall apply to such Loan.

               (b)  Prime Rate Loans.

                    (i)  Initial Loans. The Company shall give the Lender, in
          the case of Prime Rate Loans, irrevocable telephonic notice, confirmed
          immediately by a written notice, on the date specified in the notice
          for such Prime Rate Loan; provided, however, that the failure by the
          Company to confirm any notice shall not invalidate any notice so
          given.

                    (ii) Repayments and Reborrowings. The Company may repay a
          Prime Rate Loan at any time and (A) reborrow all or a portion of the
          principal amount thereof as one or more Eurodollar Rate Loans, or (B)
          not reborrow all or any portion of such Prime Rate Loan.

               (c)  Eurodollar Rate Loans.

                    (i)  Initial Loans. The Company shall give the Lender, in
          the case of Eurodollar Rate Loans, at least two (2) Banking Days'
          irrevocable telephonic notice, confirmed immediately by a written
          notice, which notice shall include the proposed Interest Period;
          provided, however, that the failure of the Company to confirm any
          notice shall not invalidate any notice so given. The Lender, whose
          determination shall be conclusive, shall determine the available
          Eurodollar Rate Basis and shall notify the Company of such Eurodollar
          Rate Basis.

                    (ii) Repayments and Reborrowings. At least two (2) Banking
          Days' prior to the maturity date for a Eurodollar Rate Loan, the
          Company shall give the Lender written notice (or telephonic notice
          confirmed immediately by a written notice) specifying whether all

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          or a portion of any Eurodollar Rate Loan outstanding on such maturity
          date (A) is to be repaid and then reborrowed in whole or in part as a
          Eurodollar Rate Loan, (B) is to be repaid and then reborrowed in whole
          or in part as a Prime Rate Loan, or (C) is to be repaid and not
          reborrowed. The Company's failure to give a proper notice shall be
          deemed a request to reborrow the entire maturing amount as a Prime
          Rate Loan. Upon such maturity date such Eurodollar Rate Loan will,
          subject to the provisions hereof, be so repaid and, as applicable,
          reborrowed. Each repayment shall be in an amount not less than US Five
          Hundred Thousand Dollars (US$500,000.00). The Company's failure to
          give a proper notice shall be deemed a request to reborrow the entire
          maturing amount as a Prime Rate Loan.

                    (iii)  Limitation on Eurodollar Rate Loans. Each Eurodollar
          Rate Loan shall be in a minimum amount of US One Million Dollars
          (US$1,000,000.00) or integral multiples of US One Hundred Thousand
          Dollars (US$100,000.00) in excess thereof. Notwithstanding anything to
          the contrary contained herein, no more than two (2) Eurodollar Rate
          Loans may be outstanding under this Agreement at any one time.

                    (iv)   Prepayment. Eurodollar Rate Loans may be prepaid
          prior to the applicable maturity date, upon four (4) Banking Days'
          prior written notice to the Lender, provided that the Company shall
          reimburse the Lender, on demand, for any loss or out-of-pocket expense
          incurred by the Lender in connection with such prepayment. Any notice
          of prepayment of a Eurodollar Rate Loan shall be irrevocable. Each
          prepayment of any of the Eurodollar Rate Loan shall be in an amount
          not less than US Five Hundred Thousand Dollars (US$500,000.00).

               (d)  Certain Fees. As additional consideration for the credit
     facility established in Section 2.1 hereof, the Company agrees to pay the
     Lender a facility fee payable on the first day of each month equal to 0.5%
     per annum of the average unused portion of the facility during the prior
     month minus $5,000,000.00. As compensation for delays in the collection and
           -----
     clearance of checks, each month the Lender will charge the Company's
     account with respect to each remittance received against Receivables during
     the month for an amount equal to interest on the amount of such remittance
     at the Prime Rate Basis then in effect for the period beginning with the
     day following the day of receipt of such remittance and ending at the end
     of the second Banking Day following the day of such receipt. In the event
     of termination of this Agreement by either party hereto, the Lender's
     entitlement to this charge shall continue so long as any obligations
     hereunder are outstanding.

               (e)  General. Interest on the Loans shall be due and payable
     monthly, on the first day of each month. The final payment of all accrued
     and unpaid interest shall be due and payable on the date that the
     outstanding principal amount of the Loans is paid or due and payable in
     full. After an Event of Default,

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     interest on the Loans shall also be due and payable, upon demand from time
     to time by the Lender. The Lender shall advise the Company of the amount of
     interest due and payable as of the days set forth above, and the Company
     shall pay the same when due or the Lender may, in its discretion, charge
     such amount to the Company's account under this Agreement. Upon the entire
     outstanding principal amount of the Loans becoming due and payable or if
     any payment of principal or interest is not timely made, interest shall
     accrue on the unpaid principal balance of the Loans or on such defaulted
     principal payment, from the date that the Loans became so due and payable,
     or that the defaulted payment was not timely made, at an annual rate of
     three percent (3%) plus the Prime Rate. Such interest shall continue to
     accrue until the date of payment of all principal and accrued but unpaid
     interest or such defaulted payment, as applicable, and shall be due and
     payable upon demand from time to time by the Lender.

               (d)  Add the following new Sections 2.9, 2.10, 2.11, and 2.12:

                    2.9  EURODOLLAR RATE BASIS DETERMINATION INADEQUATE OR
     UNFAIR.  Notwithstanding anything contained herein which may be construed
     to the contrary, if with respect to any proposed Eurodollar Rate Loan for
     any Interest Period, the Lender determines that deposits in Dollars (in the
     applicable amount) are not being offered to the Lender in the relevant
     market for such Interest Period on a basis sufficient to permit a fair
     establishment of the Eurodollar Rate, the Lender shall forthwith give
     notice thereof to the Company, whereupon until the Lender notifies the
     Company that the circumstances giving rise to such situation no longer
     exist, the obligations of the Lender to make such Eurodollar Rate Loans
     shall be suspended.

                    2.10  ILLEGALITY.  If any applicable law, rule or
     regulation, or any change therein, or any interpretation or change in
     interpretation or administration thereof by any governmental authority,
     central bank or comparable agency charged with the interpretation or
     administration thereof, or compliance by the Lender with any request or
     directive (whether or not having the force of law) of any such authority,
     central bank or comparable agency, shall make it unlawful or impossible for
     the Lender to make, maintain or fund its Eurodollar Rate Loans, the Lender
     shall so notify the Company.  Upon receipt of such notice, notwithstanding
     anything contained herein, the Company shall repay in full the then-
     outstanding principal amount of each affected Eurodollar Rate Loan,
     together with accrued interest thereon either (a) on the last day of the
     then current Interest Period applicable to such Eurodollar Rate Loan if the
     Lender may lawfully continue to maintain and fund such Eurodollar Rate Loan
     to such day or (b) immediately if the Lender may not lawfully continue to
     fund and maintain such Eurodollar Rate Loan, whereupon the Company shall
     borrow a Prime Rate Loan from the Lender, and the Lender shall make such
     Prime Rate Loan, in the amount of the Eurodollar Rate Loans to be repaid.

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                    2.11  INCREASED COSTS.

                          (a) If any applicable law, rule or regulation, or any
     change therein, or any interpretation or change in interpretation or
     administration thereof by any governmental authority, central bank or
     comparable agency charged with the interpretation or administration thereof
     or compliance by the Lender with any request or directive (whether or not
     having the force of law) of any such authority, central bank or comparable
     agency:

                              (i)  shall subject the Lender to any tax, duty or
          other charge with respect to its obligation to make Eurodollar Rate
          Loans, or shall change the basis of taxation or other charges or
          payments to the Lender of the principal of or interest on its
          Eurodollar Rate Loans (except for changes in the rate of tax on the
          overall net income of the Lender imposed by the jurisdiction in which
          the Lender's principal executive office is located); or

                              (ii) shall impose, modify or deem applicable any
          reserve (including, without limitation, any imposed by the Board of
          Governors of the Federal Reserve System, but excluding any included in
          an applicable domestic reserve percentage), special deposit, capital
          adequacy, assessment or other requirement or condition against assets
          of, deposits with or for the account of, or commitments or credit
          extended by, the Lender or shall impose on the Lender or the
          Eurodollar borrowing market any other condition affecting its
          obligation to make such Eurodollar Rate Loans;

     and the result of any of the foregoing is to increase the cost to the
     Lender of making or maintaining any such Eurodollar Rate Loans, or to
     reduce the net amount of any sum received or receivable by the Lender under
     this Agreement then, on demand by the Lender, the Company agrees to pay to
     the Lender such additional amount or amounts as will compensate the Lender
     for such increased costs or reduced returns.

                          (b)  A certificate of the Lender claiming compensation
     under this Section 2.11 and setting forth the additional amount or amounts
     to be paid to it hereunder and calculations therefor shall be conclusive in
     the absence of manifest error. In determining such amount, the Lender may
     use any reasonable averaging and attribution methods. Concurrently with
     prepaying such Eurodollar Rate Loans, the Company shall borrow a Prime Rate
     Loan from the Lender, and the Lender shall make such Prime Rate Loan in the
     amount of the outstanding Eurodollar Rate Loans.

                    2.12  EFFECT ON OTHER ADVANCES. If notice has been given
     pursuant to Section 2.9, 2.10 or 2.11 suspending the obligation of the
     Lender to make any Eurodollar Rate Loan, or requiring Eurodollar Rate Loans
     of

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     the Lender to be repaid or prepaid, then, unless and until the Lender
     notifies the Company that the circumstances giving rise to such repayment
     no longer apply, all Loans which would otherwise be made by the Lender as
     Eurodollar Rate Loans shall be made instead as Prime Rate Loans.

          (e) Add, immediately following the signature pages, ANNEX I in the
form of Exhibit A attached hereto.

     3.   Restatement of Representations and Warranties.  The Company hereby
          ---------------------------------------------
reaffirms each and every representation and warranty heretofore made by it under
or in connection with the execution and delivery of the Agreement and the
documents executed in connection therewith (including, without limitation, those
representations and warranties set forth in Section 7 of the Financing
Agreement) as fully as though such representations and warranties had been made
on the date hereof and with specific reference to this Amendment.

     4.   No Default.  To induce the Lender to enter into this Amendment the
          ----------
Company hereby, as of the date hereof, and after giving effect to the terms
hereof, (i) represents and warrants that there exists no Event of Default (or
any event which, with the giving of notice or the passage of time, or both,
would constitute an Event of Default), and (ii) agrees that there exists no
right of offset, defense, counterclaim, claim or objection in favor of the
Company as against the Lender arising out of or with respect to any of the
Obligations.

     5.   Effect of Amendment.  Except as expressly set forth hereinafter, the
          -------------------
Agreement and documents executed in connection therewith shall be and remain in
full force and effect and shall constitute the legal, valid, binding and
enforceable obligations of the Company to the Lender and the Company hereby
restates, ratifies and reaffirms each and every term and condition set forth in
the Agreement and documents executed in connection therewith effective as of the
date hereof.

     6.   Counterparts.  This Amendment may be executed in any number of
          ------------
counterparts and by different parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.

     7.   Successors and Assigns.  This Amendment shall be binding upon and
          ----------------------
inure to the benefit of the successors and permitted assigns of the parties
hereto.

     8.   Section References.  Section titles and references used in this
          ------------------
Amendment shall be without substantive meaning or content of any kind whatsoever
and are not a part of the agreements among the parties hereto evidenced hereby.

     9.   Costs, Expenses, Taxes and Fees.  The Company agrees to pay on demand
          -------------------------------
all costs and expenses of the Lender in connection with the preparation,
execution, delivery and enforcement of this Amendment and any other transactions

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contemplated hereby, including, without limitation, the fees and out-of-pocket
expenses of legal counsel to the Lender.

     10.  Further Assurances.  The Company agrees to take such further action as
          ------------------
the Lender shall reasonably request in connection herewith to evidence the
amendments herein contained to the Financing Agreement.

     11.  Governing Law.  This Amendment shall be governed by, and construed in
          -------------
accordance with, the laws of the State of Georgia.

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     IN WITNESS WHEREOF, the Company and the Lender have caused this Amendment
to be duly executed under seal, all as of the date first above written.

                         SHEFFIELD STEEL CORPORATION, F/K/A HMK INDUSTRIES OF
                         OKLAHOMA, INC., SUCCESSOR BY MERGER TO SHEFFIELD STEEL
                         CORPORATION-SAND SPRINGS, F/K/A SHEFFIELD STEEL
                         CORPORATION and SHEFFIELD STEEL CORPORATION - JOLIET


                         By: /s/ Stephen R. Johnson VP-CFO
                            ------------------------------------------------
                                                            (Title)

                         Attest: /s/ Cheryl Kaiser
                                --------------------------------------------

                                        [CORPORATE SEAL]




                         NATIONSBANK, N.A., F/K/A NATIONSBANK, N.A. (SOUTH),
                         F/K/A NATIONSBANK OF GEORGIA, N.A.


                         By: /s/ Stuart A. Hall, Vice President
                            ------------------------------------------------
                                                            (Title)

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