<PAGE>
                 AMENDMENT NO. 9
                       TO
           LOAN AND SECURITY AGREEMENT
          DATED AS OF SEPTEMBER 7, 1994

          THIS AMENDMENT NO. 9 dated as of February 7, 1997 (this
"Amendment") is entered into among BANKAMERICA BUSINESS CREDIT, INC., a
Delaware corporation ("BABC"), THE BANK OF NEW YORK COMMERCIAL CORPORATION, a
New York corporation ("BNYCC"), THE BOATMEN'S NATIONAL BANK OF ST. LOUIS, a
national banking association ("Boatmen's") (BABC, BNYCC and Boatmen's and their
respective successors and assigns being sometimes hereinafter referred to
collectively as the "Lenders" and each of BABC, BNYCC and Boatmen's and its
successors and assigns being sometimes hereinafter referred to individually as
a "Lender"), BANKAMERICA BUSINESS CREDIT, INC., a Delaware corporation, as
agent for the Lenders (in such capacity as agent, the "Agent"), LACLEDE STEEL
COMPANY, a Delaware corporation (the "Parent"), LACLEDE CHAIN MANUFACTURING
COMPANY, a Delaware corporation ("Laclede Chain"), and LACLEDE MID AMERICA
INC., an Indiana corporation ("Laclede Mid America") (the Parent, Laclede Chain
and Laclede Mid America being sometimes hereinafter referred to collectively as
the "Borrowers" and each of the Parent, Laclede Chain and Laclede Mid America
being sometimes hereinafter referred to individually as a "Borrower").

              W I T N E S S E T H:

          WHEREAS, the Borrowers, the Lenders and the Agent are parties
to a certain Loan and Security Agreement dated as of September 7, 1994 (the
"Loan Agreement");

          WHEREAS, the Loan Agreement was amended by (a) Amendment No. 1
dated as of February 15, 1995, (b) Amendment No. 2 dated as of May 10, 1995,
(c) Amendment No. 3 dated as of June 1, 1995, (d) Amendment No. 4 dated as of
December 7, 1995, (e) Amendment No. 5 dated as of January 26, 1996, (f)
Amendment No. 6 dated as of June 26, 1996, (g) Amendment No. 7 dated as of July
30, 1996, and (h) Amendment No. 8 dated as of November 14, 1996 (the Loan
Agreement, as so amended, being hereinafter referred to as the "Amended Loan
Agreement," capitalized terms used herein without definition having the
meanings given such terms in the Amended Loan Agreement); and

          WHEREAS, the Borrowers, the Lenders and the Agent have agreed
to amend the Amended Loan Agreement on the terms and conditions hereinafter set
forth;

          NOW, THEREFORE, in consideration of the premises set forth
above, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrowers, the Lenders and
the Agent hereby agree as follows:

          Section 1.  Amendment of the Amended Loan Agreement. 
Effective as of February 7, 1997, subject to the fulfillment of the conditions
precedent set forth in Section 2 below, the Amended Loan Agreement is amended
as follows:

          (a)  The definition of "Individual Maximum Revolver Amount" is
amended and restated as set forth on Exhibit A attached hereto.

          (b)  The definition of "Maximum Revolver Amount" is amended
and restated as set forth on Exhibit B attached hereto.

          (c)  The definition of "Restricted Investment" contained in
Section 1.1 is amended to add the following immediately following clause (m)
thereof:

               , and (n) a promissory note in the principal amount of
          $1,653,000 received by the Parent as partial consideration for
          the sale on or about February 10, 1996 by the Parent to 
          Excaliber Tubular Corporation of the Parent's Inventory and
          Fixed Assets located at the Parent's Benwood, West Virginia
          tube mill facility

          (d)  The definition of "Revolver Facility" contained in
Section 1.1 is amended to delete the amount of "$100,000,000" contained therein
and to substitute the amount of "$90,000,000" therefor.

          (e)  Section 2.1 is amended to delete the amount of
$110,000,000" contained therein and to substitute the amount of "$100,000,000"
therefor.

          (f)  Section 5.1(c)(v) is amended and restated as follows:

               (v)  Equipment;
    
          (g)  Section 8.9(a) is amended to add the following
immediately following clause (viii) thereof:

               , and (ix) for a sale by the Parent to Excaliber
          Tubular Corporation of the Parent's Inventory and Fixed Assets
          located at the Parent's Benwood, West Virginia tube mill
          facility

          (h)  The Commitments of each Lender are revised as set forth
on the signature pages of this Amendment.

          Section 2.  Conditions to Amendment.  This Amendment shall
become effective upon the satisfaction of the following conditions precedent:

          (a)  The Agent shall have received, in the Agent's account
     referred to in Section 13.11 of the Loan Agreement, all of the cash
     proceeds of the sale by the Parent to Excaliber Tubular Corporation of
     the Parent's Inventory and Fixed Assets located at the Parent's
     Benwood, West Virginia tube mill facility, which proceeds shall be in
     a minimum amount of $1,000,000 plus the aggregate amount (the
     "Inventory Amount") of the outstanding Revolving Loans made on the
     basis of the Parent's Inventory located at the Parent's Benwood, West
     Virginia tube mill facility, with instructions to apply (i) $1,000,000
     to the installments of principal of the Term Loans in the inverse
     order of maturity, and (ii) the remainder as a repayment of the
     Revolving Loans, in each case based upon the Pro Rata Shares of the
     Lenders.

          (b)  The Agent shall have received a pledge of that certain
     promissory note in the principal amount of $1,653,000 executed by
     Excaliber Tubular Corporation and payable to the Parent.

          (c) The Agent shall have received six counterparts of this
     Amendment, executed by each Borrower and each Lender, and the Agent
     shall have executed this Amendment.

          (d)  The Agent shall have received a certificate of the Parent
     with respect to the sale to Excaliber Tubular Corporation of the
     Parent's Inventory and Fixed Assets located at the Parent's Benwood,
     West Virginia tube mill facility (i) setting forth the purchase price
     to be paid for such Inventory, with satisfactory detail, and (ii) with
     respect to the Inventory Amount, identifying any such Inventory that
     provided the basis for outstanding Revolving Loans and the advance
     rates applicable thereto.
  
          Section 3.  Grant by Laclede Mid America.  As security for all
Obligations, Laclede Mid America hereby grants to the Agent, for the ratable
benefit of the Secured Creditors, a continuing security interest in, lien on,
and right of set-off against, all of Laclede Mid America's Equipment, whether
now owned or existing or hereafter acquired or arising, regardless of where
located.

          Section 4.  Representations and Warranties.  Each Borrower
hereby represents and warrants that (i) this Amendment constitutes a legal,
valid and binding obligation of such Borrower, enforceable against such
Borrower in accordance with its terms, (ii) the representations and warranties
contained in the Amended Loan Agreement are correct in all material respects as
though made on and as of the date of this Amendment, and (iii) no Event of
Default has occurred and is continuing.

          Section 5.  Reference to and Effect on the Amended Loan
Agreement.

          (a)   Upon the effectiveness of this Amendment, each
reference in the Amended Loan Agreement to "this Agreement", "hereunder",
"hereof", "herein", or words of like import shall mean and be a reference to
the Amended Loan Agreement, as amended hereby, and each reference to the
Amended Loan Agreement in any other document, instrument or agreement executed
and/or delivered in connection with the Amended Loan Agreement shall mean and
be a reference to the Amended Loan Agreement, as amended hereby.

          (b)  Except as specifically amended above, the Amended Loan
Agreement and all other documents, instruments and agreements executed and/or
delivered in connection therewith shall remain in full force and effect and are
hereby ratified and confirmed.

          (c)  The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the
Agent or the Lenders under the Amended Loan Agreement, nor constitute a waiver
of any provision of the Amended Loan Agreement, except as specifically set
forth herein.

          Section 6.  Execution in Counterparts.  This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute but
one and the same instrument.

          Section 7.  Governing Law.  This Amendment shall be governed
by and construed in accordance with the internal laws (as opposed to the
conflicts of laws provisions) of the State of Illinois.

          Section 8.  Legal Fees.  The Borrowers agree to pay to the
Agent, for its benefit, on demand, all costs and expenses that the Agent pays
or incurs in connection with the negotiation, preparation, consummation,
administration, enforcement and termination of this Amendment, including,
without limitation, the allocated costs of the Agent's in-house counsel fees.
<PAGE>
          Section 9.  Section Titles.  The section titles contained in
this Amendment are and shall be without substance, meaning or content of any
kind whatsoever and are not a part of the agreement between the parties hereto.

          IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of February 7, 1997.


                              LACLEDE STEEL COMPANY



             By:________________________________
                                 Vice President


                         LACLEDE CHAIN MANUFACTURING COMPANY



             By:________________________________
                                 Vice President


                              LACLEDE MID AMERICA INC.



             By:________________________________
                                 Vice President

<PAGE>
                              BANKAMERICA BUSINESS CREDIT, INC., as the
                              Agent



             By:________________________________
                                 Vice President


                              BANKAMERICA BUSINESS CREDIT,
                              INC., as a Lender



Commitment: $65,449,186.00By:________________________________
                                 Vice President


                              THE BANK OF NEW YORK
                              COMMERCIAL CORPORATION, as a
                              Lender



Commitment: $25,172,984.00By:________________________________
                                 Vice President


                              THE BOATMEN'S NATIONAL BANK
                              OF ST. LOUIS, as a Lender



Commitment: $5,034,406.00By:________________________________
                                 Vice President
<PAGE>
                   EXHIBIT A
                      TO
                AMENDMENT NO. 9


          "Individual Maximum Revolver Amount" means

          (1)  at any time with respect to the Parent

          (a) the lesser of

               (i) the Revolver Facility; or

               (ii) the sum of

                         (A) eighty-five percent (85.0%) of
                    the Net Amount of the Eligible Accounts of
                    the Parent; plus (B) the sum of (x) sixty-five (65.0%)
                    (as such percentage may be reduced pursuant to Section 5.10)
                    of the value of Eligible Inventory of the Parent
                    consisting of raw material or semi-finished
                    or finished goods plus (y) fifty percent
                    (50.0%)(as such percentage may be reduced
                    pursuant to Section 5.10) of the value of
                    Eligible Inventory of the Parent consisting
                    of supplies; provided, however, that at no
                    time shall the sum of the outstanding
                    Revolving Loans to the Parent based upon the
                    value of Eligible Inventory exceed the
                    following amounts during the periods
                    indicated:

               Amount                   Period

             $58,000,000      12/31/96 to and including  2/10/97

             $50,000,000       2/10/97 to and including 3/30/97

             $49,700,000       3/31/97 to and including 4/29/97

             $49,400,000       4/30/97 to and including  5/30/97

             $49,100,000       5/31/97 to and including  6/29/97

             $48,800,000       6/30/97 to and including  7/30/97

             $48,500,000       7/31/97 to and including  8/30/97

             $48,200,000       8/31/97 to and including  9/29/97

             $48,000,000       9/30/97 and thereafter;


                      minus

          (b) the sum of

               (i) reserves for accrued interest on the Obligations
          owing by the Parent;

               (ii) any Fixed Asset Reserve with respect to the
          Parent; and

               (iii) all other reserves which the Agent deems
          necessary in the exercise of reasonable credit judgment to
          maintain with respect to the Parent's account, and which are
          reasonably related to the preservation or protection of the
          value of the Collateral or the business value of the Parent,
          including, without limitation, any Environmental Compliance
          Reserve with respect to the Parent and reserves for any
          amounts which the Agent or any Lender may be obligated to pay
          in the future for the account of the Parent;

          (2)  at any time with respect to Laclede Chain,

          (a) the lesser of

               (i) the Revolver Facility; or

               (ii) the sum of

                         (A) eighty-five percent (85.0%) of
                    the Net Amount of Eligible Accounts of
                    Laclede Chain, plus (B) the sum of (x) sixty-five percent
                    (65.0%) (as such percentage may
                    be reduced pursuant to Section 5.10) of the
                    value of Eligible Inventory of Laclede Chain
                    consisting of raw material or semi-finished
                    or finished goods plus (y) fifty percent
                    (50.0%) (as such percentage may be reduced
                    pursuant to Section 5.10) of the value of
                    Eligible Inventory of Laclede Chain
                    consisting of supplies; provided, that at no
                    time shall the sum of outstanding Revolving
                    Loans to Laclede Chain based upon the value
                    of Eligible Inventory exceed $48,000,000

                      minus

          (b) the sum of

               (i) reserves for accrued interest on the Obligations
          owing by Laclede Chain;

               (ii) any Fixed Asset Reserve with respect to Laclede
          Chain; and

               (iii) all other reserves which the Agent deems
          necessary in the exercise of reasonable credit judgment to
          maintain with respect to Laclede Chain's account, and which
          are reasonably related to the preservation or protection of
          the value of the Collateral or the business value of Laclede
          Chain, including, without limitation, any Environmental
          Compliance Reserve with respect to Laclede Chain and reserves
          for any amounts which the Agent or any Lender may be obligated
          to pay in the future for the account of Laclede Chain; and

          (3)  at any time with respect to Laclede Mid America,

          (a) the lesser of

               (i) the Revolver Facility; or

               (ii) the sum of

                         (A) eighty-five percent (85.0%) of
                    the Net Amount of Eligible Accounts of
                    Laclede Mid America, plus (B) the sum of
                    (x) sixty-five percent (65.0%) (as such
                    percentage may be reduced pursuant to Section
                    5.10) of the value of Eligible Inventory of
                    Laclede Mid America consisting of raw
                    material or semi-finished or finished goods
                    plus (y) fifty percent (50.0%) (as such
                    percentage may be reduced pursuant to Section
                    5.10) of the value of Eligible Inventory of
                    Laclede Mid America consisting of supplies;
                    provided, that at no time shall the sum of
                    outstanding Revolving Loans to Laclede Mid
                    America based upon the value of Eligible
                    Inventory exceed $48,000,000

                      minus

          (b) the sum of

               (i) reserves for accrued interest on the Obligations
          owing by Laclede Mid America;

               (ii) any Fixed Asset Reserve with respect to Laclede
          Mid America; and

               (iii) all other reserves which the Agent deems
          necessary in the exercise of reasonable credit judgment to
          maintain with respect to Laclede Mid America's account, and
          which are reasonably related to the preservation or protection
          of the value of the Collateral or the business value of
          Laclede Mid America, including, without limitation, any
          Environmental Compliance Reserve with respect to Laclede Mid
          America and reserves for any amounts which the Agent or any
          Lender may be obligated to pay in the future for the account
          of Laclede Mid America.
<PAGE>
                   EXHIBIT B
                      TO
                AMENDMENT NO. 9


          "Maximum Revolver Amount" means, at any time,

          (a) the lesser of

               (i) the Revolver Facility; or

               (ii) the sum of

                         (A) eighty-five percent (85.0%) of
                    the Net Amount of the Eligible Accounts; plus
                    (B) the sum of (x) sixty-five (65.0%) (as
                    such percentage may be reduced pursuant to
                    Section 5.10) of the value of Eligible
                    Inventory consisting of raw material or semi-finished or 
                    finished goods plus (y) fifty
                    percent (50.0%) (as such percentage may be
                    reduced pursuant to Section 5.10) of the
                    value of Eligible Inventory consisting of
                    supplies; provided, at no time shall the sum
                    of the outstanding Revolving Loans based upon
                    the value of Eligible Inventory exceed the
                    following amounts during the periods
                    indicated:


               Amount                   Period

             $58,000,000      12/31/96 to and including  2/10/97

             $50,000,000       2/10/97 to and including 3/30/97

             $49,700,000       3/31/97 to and including 4/29/97

             $49,400,000       4/30/97 to and including  5/30/97

             $49,100,000       5/31/97 to and including  6/29/97

             $48,800,000       6/30/97 to and including  7/30/97

             $48,500,000       7/31/97 to and including  8/30/97

             $48,200,000       8/31/97 to and including  9/29/97

             $48,000,000       9/30/97 and thereafter;

                      minus

          (b) the sum of

               (i) reserves for accrued interest on the Obligations;

               (ii) any Fixed Asset Reserve with respect to any
          Borrower; and

               (ii) all other reserves which the Agent deems
          necessary in the exercise of reasonable credit judgment to
          maintain with respect to any Borrower's account, and which are
          reasonably related to the preservation or protection of the
          value of the Collateral or the business value of such
          Borrower, including, without limitation, any Environmental
          Compliance Reserve and reserves for any amounts which the
          Agent or any Lender may be obligated to pay in the future for
          the account of such Borrower.