General Steel (GSIH) 8-K General Steel Announces Change of Auditor

Exhibit 16.1

January 4, 2011 

U.S. Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549-6010

Dear Ladies and Gentlemen:

We have read Item 4.01, and are in agreement with, the statements as they related to our firm being made by General Steel Holdings, Inc. in Item 4.01 of its Form 8-K dated January 5, 2011, captioned “Changes in Registrant’s Certifying Accountant.”  We have no basis to agree or disagree with the other statements contained therein.

/s/ Frazer Frost, LLP

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FRAZER FROST, LLP is an independent firm associated with Moore Stephens International Limited.