1
                                                                      EXHIBIT 15

Board of Directors
Chaparral Steel Company

We are aware of the incorporation by reference in the Registration Statement
(Form S-8  No. 33-39626) pertaining to the Chaparral Steel Company Stock
Option Plan of our report dated December 16, 1994, relating to the unaudited
condensed consolidated interim financial statements of Chaparral Steel Company
and subsidiaries which are included in its Form 10-Q  for the quarter ended
November 30, 1994.

Pursuant to Rule 436(c) of Securities Act of 1933  our report is not a part of
the Registration Statement prepared or certified by accountants within the
meaning of Section 7 or 11 of the Securities Act of 1933.

                                        Ernst and Young LLP

Dallas, Texas
January 9, 1995


                                       13