SECURITIES AND EXCHANGE COMMISSION
                    Washington, D. C.  20549
  
  
  [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE        
SECURITIES EXCHANGE ACT OF 1934
  
       For the quarterly period ended September 30, 1997
  
                               OR
  
  [ ]   TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934
  
  For the transition period from                to             
  
                 Commission File Number 0-3855
  
  
                      LACLEDE STEEL COMPANY             
     (Exact name of Registrant as specified in its charter)
  
            Delaware                        43-0368310    
  (State or other jurisdiction of       I.R.S. Employer
  incorporation or organization)        Identification No.
  
  
      One Metropolitan Square, St. Louis, Missouri  63102
            (Address of principal executive offices)
                           (Zip code)
  
  
                          314-425-1400                         
      (Registrant's telephone number, including area code)
  
                                                                  
   (Former name, former address and former fiscal year, if
  changed since last report)
   
     Indicate by check mark whether the registrant (1) has
  filed all reports required to be filed by Section 13 or 15(d)
  of the Securities Exchange Act of 1934 during the preceding 12
  months (or for such shorter period that the registrant was
  required to file such reports), and (2) has been subject to
  such filing requirements for the past 90 days.
  
    Yes   X      No      
  
     As of October 30, 1997 there were 4,056,140 shares of $.01
    par value common stock outstanding.
<PAGE>




          LACLEDE STEEL COMPANY
            AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF OPERATIONS
  (In Thousands Except Per Share Data)


                                         Third Quarter Ended Year to Date
                                         September 30,      September 30,
                                         1997     1996      1997     1996 

Net sales                                  85,788   83,630   245,356  251,041

Costs and expenses:
     Cost of products sold                 77,163   80,836   222,213  240,139
     Selling, general and administrative    3,329    3,658     9,939   10,538
     Depreciation                           1,922    1,924     5,782    5,830
     Interest expense, net                  2,483    2,740     7,255    8,336
     Gain on sale of facility                  --       --      (987)      --
          Total costs and expenses         84,897   89,158   244,202  264,843

Earnings (loss) before income taxes           891   (5,528)    1,154  (13,802)

Provision (credit) for income taxes           370   (2,138)      489   (5,336)

Net earnings (loss)                           521   (3,390)      665   (8,466)


Net earnings (loss) per share                0.11    (0.84)     0.09    (2.09)





















                  - 1 -
<PAGE>



                  LACLEDE STEEL COMPANY
                     AND SUBSIDIARIES
               CONSOLIDATED BALANCE SHEETS
                          ASSETS
                      (In Thousands)


                                                          Sep. 30,   Dec. 31,
                                                          1997       1996

Current Assets:
    Cash and cash equivalents                                 136        143
    Accounts receivable, less allowances                   46,626     38,772
    Prepaid expenses                                          522        443
    Inventories:
        Finished                                           46,191     46,631
        Semi-finished                                      16,691     23,540
        Raw materials                                       4,804      5,218
        Supplies                                           15,101     14,720
        Total inventories                                  82,787     90,109

            Total Current Assets                          130,071    129,467




Non-Current Assets:
    Intangible pension asset                               13,114     14,464
    Other intangible assets                                 2,155      2,263
    Bond funds in trust                                     2,385      2,385
    Prepaid pension contributions                           5,484      5,766
    Deferred income taxes                                  47,180     47,557
    Notes receivable                                        3,466      3,600
    Other                                                   3,979      4,104
            Total Non-Current Assets                       77,763     80,139




Plant and Equipment, at cost                              238,710    245,624
    Less - accumulated depreciation                       127,037    124,120
            Net Plant and Equipment                       111,673    121,504




Total Assets                                              319,507    331,110




                          - 2 -
<PAGE>






           LIABILITIES AND STOCKHOLDERS' EQUITY



                                                          Sep. 30,   Dec. 31,
                                                          1997       1996

Current Liabilities:
    Accounts payable                                       35,577     41,293
    Accrued compensation                                    4,528      6,780
    Current portion of long-term debt                       2,356      2,484
    Accrued costs of pension plans                         14,905     14,049
    Other                                                   1,870      2,860
            Total Current Liabilities                      59,236     67,466


Non-Current Liabilities:
    Accrued costs of pension plans                         46,159     53,181
    Accrued postretirement medical benefits                77,184     79,782
    Other                                                   3,837      5,547
            Total Non-Current Liabilities                 127,180    138,510


Long-Term Debt:
    Bank revolving credit                                  82,503     76,126
    Bank term loan                                          7,629      5,348
    Revenue bonds                                          23,330     24,415
    Other                                                   2,000      2,000
            Total Long-Term Debt                          115,462    107,889


Stockholders' Equity:
    Preferred stock, no par value, authorized 2,000,000
      shares; issued and outstanding 416,667 shares            83         83
    Common stock, $0.01 par value, authorized 25,000,000
      shares; issued and outstanding 4,056,140 shares          41         41
    Capital in excess of par value                         59,857     60,138
    Accumulated deficit                                   (11,635)   (12,300)
    Minimum pension liability adjustment                  (30,717)   (30,717)
            Total Stockholders' Equity                     17,629     17,245



Total Liabilities and Stockholders' Equity                319,507    331,110



                          - 3 -
<PAGE>



LACLEDE STEEL COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

                                                      Nine Months Ended
                                                      September 30,
                                                      1997       1996

Cash flows from operating activities:
 Net earnings (loss)                                      665     (8,466)
 Adjustments to reconcile net earnings (loss) to
    net cash provided by (used in) operating activities:
      Depreciation                                      5,782      5,830
      Change in deferred income taxes                     377     (5,406)
      Gain on sale of facility                           (987)        --
 Changes in assets and liabilities that
    provided (used) cash, net of effects from sale of facility:
       Accounts receivable                             (7,854)    (3,314)
       Inventories                                      3,523      6,522
       Accounts payable and accrued expenses          (11,505)    12,589
       Accrued pension cost                             7,104      7,996
       Pension cash funding                           (11,638)   (12,674)
       Accrued postretirement medical benefits         (2,598)       179
       Other assets and liabilities                       713        354
  Net cash provided by (used in) operating activities (16,418)     3,610

Cash flows from investing activities:
  Capital expenditures                                 (1,765)    (9,778)
  Proceeds from sale of facility                        9,319         --
  Proceeds from sale of equipment                          --      4,000
  Payment received on note from sale of facility        1,653         --
  Net cash provided by (used in) investing activities   9,207     (5,778)

Cash flows from financing activities:
  Net borrowings (repayments) under revolving credit    6,377     (1,671)
  Payments on long-term debt                           (3,011)    (2,104)
  Proceeds from long-term debt                          4,079         --
  Proceeds from issuance of preferred stock                --      6,090
  Payment of financing costs                             (241)      (165)
  Net cash provided by financing activities             7,204      2,150

Cash and cash equivalents:

  Net decrease during the period                           (7)       (18)
  At beginning of year                                    143        161
  At end of period                                        136        143


- 4 -
<PAGE>



LACLEDE STEEL COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(In Thousands Except Per Share Data)

                                               9 Months              Year
                                               Ended                 Ended
                                               Sep. 30,           Dec. 31,
                                               1997               1996

Preferred stock
  (416,667 shares issued)
  Beginning balance                            $      83          $      --
  Sale of convertible preferred stock                 --                 83
  Ending balance                                      83                 83

Common stock - $0.01 par value
  (4,056,140 shares issued)
  Beginning balance                                   41             54,081
  Reduction in par value of common stock              --            (54,040)
  Ending balance                                      41                 41

Capital in excess of par value
  Beginning balance                               60,138                247
  Sale of convertible preferred stock                 --              6,007
  Reduction in par value of common stock              --             54,040
  Dividend on convertible preferred stock           (281)              (156)
  Ending balance                                  59,857             60,138

Accumulated deficit
  Beginning balance                              (12,300)            (2,315)
  Net earnings (loss)                                665             (9,985)
  Ending balance                                 (11,635)           (12,300)

Minimum pension liability
  Beginning balance                              (30,717)           (35,495)
  Change in period                                    --              4,778
  Ending balance                                 (30,717)           (30,717)


Total Stockholders' Equity at End of Period    $  17,629          $  17,245









- 5 -
<PAGE>
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - GENERAL

  The accompanying unaudited consolidated financial statements
  include the accounts of Laclede Steel Company and its wholly-owned
subsidiaries.  All intercompany accounts and transactions
  have been eliminated.  The consolidated financial statements
  reflect all adjustments (such adjustments are of a normal
  recurring nature unless otherwise disclosed in these interim
  financial statements) which are in the opinion of Management
  necessary for a fair statement of the results for the interim
  periods.


NOTE 2 - BENWOOD SALE

  In February 1997, the Company sold the assets of its electric
  weld structural and mechanical tubing operation, located in
  Benwood, West Virginia.  Cash proceeds from the sale of these
  assets, which consist primarily of equipment and inventory,
  totaled $10,972,000.  The Company used the funds from the sale
  to improve its working capital position.  This transaction
  resulted in a gain on sale of equipment of $987,000 ($592,000
  after tax) recorded in February 1997.


NOTE 3 - PER SHARE DATA AND PREFERRED STOCK DIVIDENDS

  Per share amounts for 1996 and 1997 have been calculated based
  on weighted average shares outstanding of 4,056,140.  The net
  earnings per share in 1997 were computed by dividing the net
  earnings after deducting preferred dividend requirements of $94
  thousand for the third quarter and $281 thousand for the first
  nine months, by the weighted average shares outstanding.

  Preferred stock dividends relate to $6.2 million of Series A
  Preferred Stock issued as of July 30, 1996.  Dividends, payable
  at an annual rate equal to 6%, accumulate and accrue from the
  date of issuance but will be payable when, as and if declared
  by the Company's Board of Directors.  No dividend has been
  declared on the Series A Preferred Stock.

  Each share of Series A Preferred Stock is convertible into 4.69
  shares of common stock.  Fully diluted earnings per share for
  the third quarter of 1997 were $.09, reflecting conversion of
  Series A Preferred Stock.  Fully diluted earnings per share for
  the first nine months of 1997 are not presented as the result
  is anti-dilutive.

The financial results for 1997 are subject to annual audit. 

                              - 6 -
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION & ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS


                 Liquidity and Capital Resources

  In the first nine months of 1997 operating activities used
$16.4 million in cash.  Significant expenditures included $4.5
million in contributions to Company pension plans in excess of
accounting accruals, $11.5 million in reductions in accounts
payable and accrued expenses, a $7.9 million increase in accounts
receivable and $2.6 million in payments for postretirement
medical benefits in excess of accounting accruals.

  Cash flow was provided by net earnings plus depreciation and
deferred tax accruals totaling $5.9 million, and $3.5 million in
inventory reductions.  In addition, cash from the sale of the
electric weld structural and mechanical tubing operation in the
first quarter of 1997, together with collection of a related note
in the third quarter totaled $11.0 million.  Outstanding
borrowings under the Company's Loan and Security Agreement
increased by $8.7 million in the first nine months of 1997.

  Net working capital increased by $8.8 million since the end of
1996.  The ratio of current assets to current liabilities was 2.2
to 1.0 at September 30, 1997.

  In the third quarter the Company reached an agreement with its
lenders for an increase in availability under the Loan and
Security Agreement of approximately $13.0 million, the majority
of which was applied as a reduction in trade accounts payable. 
During the balance of 1997, the Company anticipates capital
expenditures of approximately $.9 million, contributions to
pension plans in excess of accounting accruals of $.5 million,
and payments for postretirement medical benefits in excess of
accounting accruals of approximately $1.2 million.  Management
believes that internally generated funds together with new
banking arrangements should be adequate to finance these
expenditures.

  In connection with the new bank financing discussed above, the
Company amended its Loan and Security Agreement modifying
financial covenants relating to operating results and net worth. 
In the event further amendment to financial covenants is
necessary in the future, there can be no assurance that the
Company will be able to obtain such amendment.

  The Company is also required to comply with various covenants
related to limits on liabilities as defined in the Pollution
Control Revenue Bonds.  At September 30, 1997 the Company was in
compliance with these covenants.  As part of the modifications to
the Loan and Security Agreement previously mentioned, the Company 
                              - 7 -
<PAGE>
received the approval of parties to the Solid Waste Revenue Bonds
of changes in financial covenants and collateral arrangements
supporting these obligations.  Because of these changes, limits
on liabilities contained in that Agreement no longer apply.

  In 1996 the Company experienced higher than expected
retirements from its hourly workforce at the Alton Plant.  This
was partially the result of restructuring of operations and early
retirement incentives offered in late 1996.  In addition in
October 1997 the Company negotiated a new Labor Agreement for
hourly employees at the Alton Plant, which includes an increase
in pension benefits.  Despite the negative effect which these
factors have on pension costs, the Company does not anticipate an
increase in required plan contributions in 1998.  A planned
change in the actuarial method of recognizing gains in the market
value of pension plan assets will have a favorable impact on 1998
funding requirements, which should approximate the 1997 level.  
Current actuarial projections indicate that if the Company
continues to make its required minimum quarterly contributions,
the Plan's funded percentage will increase and future minimum
funding requirements will decline somewhat from 1997 and 1998
levels.  Under the new actuarial method with respect to the
market value of pension plan assets, however, any material
decrease in the market value of pension plan assets could have a
material adverse effect on the Company's future pension funding
requirements. 

  At September 30, 1997 the Company has net deferred tax assets
of $47.2 million.  Management currently believes that its long-term
profitability should ultimately be sufficient to enable it
to realize full benefit of future tax deductions.  Thus no
deferred tax valuation allowance is deemed necessary.

  The Company will continue to monitor and evaluate its deferred
tax assets and the need for a deferred tax valuation allowance. 
In the event a deferred tax valuation allowance is required in
the future, amendment of financial covenants in the Company's
Loan and Security Agreement, as well as its Pollution Control
Revenue Bond Agreement, may be required.  There can be no
assurance that the Company will be able to obtain such
amendments.
                      Results of Operations

  Net sales decreased by $5.7 million or 2.2% in the first
nine months of 1997 compared to the first nine months of 1996,
reflecting a 4.2% decrease in steel shipments offset by a 2.2%
increase in the average selling price for steel products.  Lower
shipments are primarily a result of the sale of the Benwood
electric weld structural tubing operation.  The cost of products
sold decreased by $18.0 million or 7.5% in the first nine months
of 1997 compared to the first nine months of 1996 reflecting the
decrease in tonnage shipped, the effect of cost reductions
implemented in late 1996, and lower costs for the Company's basic
                              - 8 -
<PAGE>
raw material, ferrous scrap.  The Company also continued to
benefit from the productivity gains which it began to experience
in most of its operations in the second half of 1996.

  Despite a 2.1% decrease in overall shipping volume, net sales
increased by $2.2 million in the third quarter of 1997 versus the
1996 third quarter.  This reflects a 4.3% increase in average
selling prices and an improved product mix.  The improvement in
product mix represents increases in shipments of higher margin
continuous weld pipe and oil tempered wire.  As a result of the
sale of the Benwood Facility there were no shipments of lower
margin electric weld structural tubing.  The third quarter cost
of products sold decreased by $3.7 million, primarily due to cost
reductions and productivity improvements and lower ferrous scrap
costs.

  The decrease in interest expense in the first nine months of
1997 is the result of the decrease in average bank borrowings,
offset by a slight increase in average interest rates.  The gain
on sale of facility in 1997 is from the sale of the Benwood
Operation discussed above.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

  The foregoing Management's Discussion and Analysis and other
portions of this report on Form 10-Q, contain various "forward-looking
statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Sections 21E of the
Securities Exchange Act of 1934, as amended, which represent the
Company's expectations or beliefs concerning future events, 
including the following:  the overall demand for steel; the
ability to maintain sales prices; productivity improvement
programs; increases in the costs of ferrous scrap; increases in
pension costs; increases in other materials and costs of
production; increases in financing costs; labor relations;
increased domestic or foreign steel competition; the Company's
long-term profitability; and future borrowing capacity.  In
addition, statements containing expressions such as "believes,"
"anticipates" or "expects" used in the Company's periodic reports
on Forms 10-K and 10-Q filed with the SEC are intended to
identify forward-looking statements.  The Company cautions that
these and similar statements included in this report and in
previously filed periodic reports including reports filed on
Forms 10-K and 10-Q are further qualified by important factors
that could cause actual results to differ materially from those  
in the forward-looking statement, including, without limitation,
the following: decline in sales prices for steel products;
increases in the cost of steel scrap; failure to obtain
significant benefits from the Company's completed cost reduction
and productivity improvement programs; increases in pension costs
and funding requirements; and increased domestic or foreign steel
competition.
                              - 9 -
<PAGE>
                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.

          None

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

          (a)  Exhibits

  (3)(a)  Registrant's Certificate of Incorporation as restated
          October 28, 1996.  (Incorporated by reference to
          Exhibit (3) in Registrant's Quarterly Report on Form
          10-Q for September 30, 1996.)

  (3)(b)  By-Laws of Registrant amended April 7, 1997. 
          (Incorporated by reference to Exhibit 4.3 in
          Registrant's Form S-8 filed on April 25, 1997.)

  (4)(a)  Registrant's Loan and Security Agreement dated as of
          September 7, 1994 amended and restated as of August 20,
          1997.

          (b)  Reports on Form 8-K.

          Form 8-K reporting on Item 1 - Change in Control of
          Registrant under a Purchase Agreement dated as of
          September 26, 1997 was filed on October 3, 1997.

          Form 8-K reporting on Item 1 - Change in Control of
          Registrant filed on October 14, 1997 reporting that on
          October 8, 1997 the Company appointed three of
          Birmingham Steel's executive officers to the Board of
          Directors of the Company.


















                              - 10 -
<PAGE>







                            SIGNATURES   



     Pursuant to the requirements of the Securities and Exchange
     Act of 1934, the Registrant has duly caused this report to
     be signed on its behalf by the undersigned thereunto duly
     authorized.




                      LACLEDE STEEL COMPANY       
                           (Registrant)




                     /s/ Michael H. Lane          
                         Michael H. Lane
                     Vice President - Finance
                     Treasurer and Secretary

                   Duly Authorized Officer and
                   Principal Financial Officer






Date:     November 5, 1997