FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934

For the month of June 2007

NOVAMERICAN STEEL INC.

(translation of Registrant’s Name into English)

6001 Irwin Street
LaSalle, Québec H8N 1A1
Canada

(Address of principal executive offices)

[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F]

Form 20-F x Form 40-F o

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934].

Yes o No x

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ]

Enclosure: 2007 Second Quarter Report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 6-K to be signed on its behalf by the undersigned, thereunto duly authorized.

	NOVAMERICAN STEEL INC.
Date: June 28, 2007	By:	/s/ Lawrence P. Cannon
	Lawrence P. Cannon, CA, Chief Financial Officer & Vice President

NOVAMERICAN STEEL INC.

2007 Second Quarter Report
For the six months ended May 26, 2007

TO THE SHAREHOLDERS OF
NOVAMERICAN STEEL INC.

Second Quarter Results

Sales for the second quarter decreased by $16.7 million, or 7.3%, to $212.4 million from $229.2 million for the same period in 2006.

Sales for the six months ended May 26, 2007 decreased by $25.2 million, or 5.9%, to $399.6 million from $424.9 million for the same period in 2006.

Tons sold and processed in the second quarter of 2007 decreased by 90,827 tons to 391,925 tons from 482,752 in the second quarter of 2006.

Tons sold and processed for the six months ended May 26, 2007 decreased by 192,548 tons to 742,510 tons from 935,058 tons for the same period in 2006.

The gross margin for the second quarter 2007 decreased to 19.5% from 21.4% in the second quarter of 2006.

The gross margin for the six months ended May 26, 2007 decreased to 19.1% from 21.5% for the same period in 2006.

Net income for the second quarter decreased by $1.9 million, or 16.1%, to $10.1 million, or $0.96 per share, versus $12.0 million, or $1.15 per share, for the same period in 2006.

Net income for the six months ended May 26, 2007 decreased by $5.6 million, or 26.8%, to $15.3 million, or $1.46 per share, versus $20.9 million, or $2.02 per share ($2.00 after dilution), for the first six months of 2006.

All dollar amounts are expressed in U.S. dollars.

Operations

The Company experienced strong demand in March but volume leveled off in early April and remained relatively flat through the month of May. Overall the Company had a successful quarter, but end user demand from automotive, residential construction and general manufacturing sectors was below expectations.

Outlook

Management believes that the service center industry will continue to reduce inventories over the summer months to come into balance with the current level of demand for steel. The Company will also be reducing inventories.

Management also expects prices to remain relatively stable as offers for competitively priced imported steel remain virtually non-existent.

D. Bryan Jones
Chairman of the Board and
Chief Executive Officer

LaSalle, Québec
June 28, 2007

The matters set forth in Outlook are forward-looking statements that involve risks and uncertainties including, but not limited to, product demand, competition, regulatory approvals, the effect of economic conditions and technological difficulties and other risks detailed in the Company’s filings with the U.S. Securities and Exchange Commission.

NOVAMERICAN STEEL INC.

Corporate and Investor Information

CORPORATE HEAD OFFICE

6001 Irwin Street
LaSalle, Québec
Canada H8N 1A1
(514) 368-6455 / (514) 335-6682
Fax: (514) 368-3635
www.novamerican.com

TRANSFER AGENT

Computershare Shareholder Services Inc.
P.O. Box 43023
Providence, RI 02940-3023
1-877-282-1168

INVESTOR INQUIRIES

Copies of the Company’s public financial reports including the Annual Report on Form 20-F filed with the Securities and Exchange Commission may be obtained from the Company’s website, www.novamerican.com or by calling (514) 368-6455.

Novamerican Steel Inc. and Subsidiaries
2007 Second Quarter Report

In accordance with U.S. GAAP, expressed in thousands of U.S. dollars, except net income per share and tonnage.

Consolidated Statements of Operations, Comprehensive Income
and Retained Earnings
(unaudited)

	Quarter ended						Six months ended
	May 26,			May 27,			May 26,			May 27,
	2007			2006			2007			2006
	$			$			$			$
Net sales	212,447			229,184			399,637			424,886
Cost of sales	170,972			180,162			323,276			333,510
Gross margin	41,475			49,022			76,361			91,376
Operating expenses
Plant	10,710			11,532			21,225			23,294
Delivery	6,356			7,104			12,202			13,439
Selling	3,621			3,587			7,175			7,067
Administrative and general	6,316			7,994			13,879			15,311
	27,003			30,217			54,481			59,111
Operating income	14,472			18,805			21,880			32,265
Interest expense	243			1,030			514			1,810
Other income	(660		)	(774		)	(1,082		)	(1,201		)
Share in income of a joint venture	(92		)	(259		)	(94		)	(448		)
	(509		)	(3		)	(662		)	161
Income before income taxes	14,981			18,808			22,542			32,104
Income taxes	4,905			6,800			7,286			11,255
Net income	10,076			12,008			15,256			20,849
Net income per share
Basic	$	0.96		$	1.15		$	1.46		$	2.02
Diluted	$	—		$	—		$	—		$	2.00
Weighted average number of shares outstanding	10,450,000			10,450,000			10,450,000			10,333,782
Comprehensive income
Net income	10,076			12,008			15,256			20,849
Changes in cumulative translation adjustment	10,708			6,476			8,627			10,416
Change in fair value of interest rate swap, net of deferred income taxes	—			12			—			42
	20,784			18,496			23,883			31,307
Retained earnings
Balance, beginning of period	271,198			230,561			266,018			221,720
Net income	10,076			12,008			15,256			20,849
Balance, end of period	281,274			242,569			281,274			242,569
Tons sold	226,687			250,314			430,079			466,182
Tons processed	165,238			232,438			312,431			468,876
	391,925			482,752			742,510			935,058

Consolidated Statements of Cash Flows

(unaudited)

	Quarter ended					Six months ended
	May 26,			May 27,		May 26,		May 27,
	2007			2006		2007		2006
	$			$		$		$
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		10,076		12,008		15,256		20,849
Adjustments to reconcile net income to net cash from (used for) operating activities
Depreciation and amortization		2,648		2,634		5,267		5,163
Share in income of a joint venture		(92	)	(260	)	(94	)	(448	)
Deferred income taxes		(36	)	(164	)	(74	)	(680	)
Loss on disposal of property, plant and equipment		9		3		8		3
Changes in working capital items
Accounts receivable		(190	)	(15,521	)	(3,567	)	(5,399	)
Income taxes receivable		149		(297	)	170		2,064
Inventories		7,355		(11,968	)	7,128		(27,279	)
Prepaid expenses and other		(129	)	(87	)	(881	)	(1,662	)
Accounts payable and accrued liabilities		(6,471	)	16,133		8,762		6,311
Income taxes payable		(1,039	)	(6	)	(4,259	)	(1,010	)
Net cash from (used for) operating activities		12,280		2,475		27,716		(2,088	)
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of loan to a Corporation		532		142		37,369		17,447
Distribution from a joint venture		—		2		—		262
Additions to property, plant and equipment		(4,521	)	(1,172	)	(6,474	)	(6,053	)
Proceeds from disposal of property, plant and equipment		248		5		255		5
Other assets		(14	)	(5	)	(30	)	(41	)
Net cash from (used for) investing activities		(3,755	)	(1,028	)	31,120		11,620
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in bank indebtedness		(1,481	)	(1,608	)	(509	)	(1,950	)
Issue of common shares		—		—		—		4,113
Repayment of long-term debt		(2,923	)	(1,214	)	(41,235	)	(1,322	)
Net cash from (used for) financing activities		(4,404	)	(2,822	)	(41,744	)	841
Effect of exchange rate changes on cash and cash equivalents		2,126		1,397		1,831		2,139
Net increase in cash and cash equivalents		6,247		22		18,923		12,512
Cash and cash equivalents, beginning of period		43,692		60,295		31,016		47,805
Cash and cash equivalents, end of period		49,939		60,317		49,939		60,317
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid		75		58		416		929
Income taxes paid		6,322		7,916		11,562		11,201

Consolidated Balance Sheets

(unaudited)

	May 26,		May 27,		November 25,
	2007		2006		2006
	(unaudited)		(unaudited)		(audited)
	$		$		$
ASSETS
Current assets
Cash and cash equivalents		49,939		60,317		31,016
Trade accounts receivable, net		116,975		133,155		109,609
Loans receivable		—		—		37,670
Income taxes receivable		2,570		831		—
Inventories		160,361		159,489		163,060
Prepaid expenses and other		3,039		3,188		2,096
Deferred income taxes		1,439		1,683		1,957
		334,323		358,663		345,408
Investment in a joint venture		1,842		2,323		1,748
Property, plant and equipment		110,116		106,983		106,309
Goodwill		12,994		12,994		12,994
Deferred income taxes		3,217		2,068		2,260
Other assets		269		424		328
		462,761		483,455		469,047
LIABILITIES
Current liabilities
Current portion of long-term debt		—		40,204		38,642
Bank indebtedness		—		807		513
Trade accounts payable and accrued liabilities		91,775		107,634		79,302
Trade accounts payable to a company controlled by a director		750		1,265		677
Trade accounts payable to a joint venture		1,133		1,460		592
Advances due to related parties		19		191		192
Income taxes payable		—		—		1,703
Deferred income taxes		237		34		290
		93,914		151,595		121,911
Long-term debt		—		3,568		2,645
Deferred income taxes		16,418		15,913		15,945
		110,332		171,076		140,501
SHAREHOLDERS’ EQUITY
Preferred shares, no par value: Unlimited number of shares authorized; none issued or outstanding
Common shares, no par value: Unlimited number of shares authorized; issued and outstanding shares:
10,450,000 in 2007 and 10,333,782 in 2006		38,904		38,904		38,904
Retained earnings		281,274		242,569		266,018
Accumulated other comprehensive income		32,251		30,906		23,624
		352,429		312,379		328,546
		462,761		483,455		469,047

NOVAMERICAN STEEL INC 6-K