U.S lawsuit could cost accused steel companies billions of dollars.

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SSAB Svenskt Stål AB, the world’s largest supplier of high-tensile steel, has been accused of illegal price-fixing agreements with seven other international steel companies, including Arcelor Mittal and US Steel, that could cost them “billions of dollars”, according to business daily Dagens Industri.

Six buyers of steel have filed a lawsuit in the United States, accusing the companies of boosting high prices by limiting supply during 2005 – 2008. The suits were filed in Illinois as early as September 2008, but the proceedings are still at an early stage.

Legal representatives at SSAB, that now are set for a long drawn process, slam the allegations as incorrect.

"SSAB believes that the accusations are entirely without foundation. To date, no information has come to light which confirms any suspicions against SSAB", Tommy Löfgren, Director of External Communications, told The Swedish Wire in an e-mail.

"As far as SSAB is concerned, these allegations are baseless. In the continued proceedings, SSAB will forcefully rebut all of the accusations".

SSAB was caught up in the legal dispute via U.S. steel pipe manufacturer's Ipsco that it bought for 7.7 billion dollar in 2007.

Stockholm-based SSAB posted a 76 percent decline in fourth- quarter profit. In February the Swedish steel maker said that the recession bottomed but at the same time warned that declining prices may offset first-quarter earnings.