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                                                                    EXHIBIT 10.1

                        AMENDMENT TO EMPLOYMENT AGREEMENT


         THIS AMENDMENT TO EMPLOYMENT AGREEMENT, effective as of August 10,
2005, by and between Robert C. Larry (the "Executive") and Metal Management,
Inc., a Delaware corporation (the "Company"), amends the terms of employment of
the Executive by the Company, as set forth in the Employment Agreement by and
between the Executive and the Company dated as of July 1, 2001 (the "Employment
Agreement"), as follows:

1.       Employment Location. Paragraph 1(a) of the Employment Agreement is
         amended to add the following new sentence to the end thereof: "The
         location of the Executive's principal place of work for the performance
         of services hereunder shall be the Company's main office in Chicago,
         Illinois."

2.       Termination Without Cause. Paragraph 4(c)(i) of the Employment
         Agreement, which generally addresses severance pay if the Executive is
         terminated by the Company without Cause, is amended to add the
         following new sentence between the current second and third sentences
         of such paragraph: "For the duration of the Severance Period, to the
         extent that the Executive or any of his dependents is eligible for and
         elects COBRA continuation coverage (as described in section 4980B of
         the Internal Revenue Code) under any Company group health plan, the
         Company shall pay 100% of the premiums necessary to maintain such COBRA
         continuation coverage."

3.       Termination Without Cause Following a Change in Control. Paragraphs
         4(c)(ii)(A) and (B) of the Employment Agreement, which address
         severance pay and payment of COBRA continuation coverage if the
         Executive is terminated by the Company without Cause during the
         12-month period immediately following a Change in Control, are amended
         to replace paragraph 4(c)(ii)(A) with the following, and to provide in
         paragraph 4(c)(ii)(B) for payment of COBRA continuation coverage for up
         to 18 months, rather than for up to the duration of the Severance
         Period:

         (A)      In lieu of the payments to be made pursuant to paragraph
                  4(c)(i) above, an immediately payable lump sum amount equal to
                  two times Executive's Salary in effect immediately prior to
                  the Date of Termination.

4.       Noncompetition Period. The introduction to paragraph 7 of the
         Employment Agreement is amended to provide as follows:

                  Noncompetition. While he is employed by the Company, and for a
         period after termination of the Executive's employment with the Company
         for any reason equal to the applicable Severance Period, or in the
         event that the Executive' Date of Termination under paragraph 4(c)
         occurs during the 12-month period immediately following a Change in
         Control, equal to 18 months:


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5.       Capitalized Terms. All capitalized terms in this Amendment not
         otherwise defined in this Amendment shall have the respective meanings
         of such terms as defined in the Employment Agreement.

6.       Effect on Other Provisions. Except as amended by this Amendment, the
         provisions of the Employment Agreement shall remain in full force and
         effect.

                                          METAL MANAGEMENT, INC.


                                          By: /s/ DANIEL W. DIENST
                                              ---------------------------------

                                          Its: Chairman of the Board, Chief
                                               --------------------------------
                                               Executive Officer and President
                                               --------------------------------


                                          EXECUTIVE


                                          /s/ ROBERT C. LARRY
                                          -------------------------------------
                                          Robert C. Larry


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