SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

    [X]              QUARTERLY REPORT PURSUANT TO SECTION 13
                 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended December 31, 2000

                                       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 0-14061


                             STEEL TECHNOLOGIES INC.
             (Exact name of registrant as specified in its charter)

                       Kentucky                                 61-0712014
              (State or other jurisdiction of                (I.R.S. Employer
               incorporation or organization)               Identification No.)

                 15415 Shelbyville Road, Louisville, KY         40245
         ---------------------------------------------------------------
               (Address of principal executive offices)      (Zip Code)

                                 (502) 245-2110
              (Registrant's telephone number, including area code)

                                 Not applicable
--------------------------------------------------------------------------------
   (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  Sections  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

There were 10,239,851 shares outstanding of the Registrant's  common stock as of
January 31, 2000.


                                       1
<PAGE>





                             STEEL TECHNOLOGIES INC.

                                      INDEX



                                                                     Page Number
PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Consolidated Balance Sheets December 31, 2000
        (Unaudited) and September 30, 2000 (Audited) ......................    3

        Condensed Consolidated Statements of Income and Comprehensive
        Income Three months ended December 31, 2000 and 1999
        (Unaudited) .......................................................    4

        Condensed Consolidated Statements of Cash Flows
        Three months ended December 31, 2000 and 1999 (Unaudited) .........    5

        Notes to Condensed Consolidated Financial Statements (Unaudited) ..  6-8

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations ............................................. 9-13

Item 3. Quantitative and Qualitative Disclosures About Market
        Risk ..............................................................   14

PART II.    OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders ...............   14


                                       2
<PAGE>


                     Part I. - FINANCIAL INFORMATION
                      Item 1. Financial Statements

                         STEEL TECHNOLOGIES INC.
                  Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                     December 31    September 30
                                                        2000            2000
                                                     -----------    ------------
(In thousands)                                       (Unaudited)      (Audited)
--------------------------------------------------------------------------------
<S>                                                   <C>             <C>
ASSETS
Current assets:
   Cash and cash equivalents ...................      $     829       $   4,469
   Trade accounts receivable, net ..............         61,823          67,039
   Inventories .................................         80,794          79,925
   Deferred income taxes .......................          2,579           2,579
   Prepaid expenses and other assets ...........          1,098           1,043
                                                      ---------       ---------
      Total current assets .....................        147,123         155,055

Property, plant and equipment, net .............        117,011         118,214
Investments in corporate joint ventures ........         20,990          20,756
Goodwill, net of amortization ..................         19,429          19,613
Other assets ...................................          1,739           1,751
                                                      ---------       ---------
                                                      $ 306,292       $ 315,389
                                                      =========       =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable ............................      $  44,486       $  44,645
   Accrued liabilities .........................          7,600           6,734
   Income taxes payable ........................          1,132            --
   Long-term debt due within one year ..........        105,090           6,248
                                                      ---------       ---------
      Total current liabilities ................        158,308          57,627

Long-term debt .................................          6,378         115,394
Deferred income taxes ..........................         14,973          15,240
Other long term liabilities ....................           --                96
                                                      ---------       ---------
      Total liabilities ........................        179,659         188,357
                                                      ---------       ---------
Commitments and contingencies ..................           --              --
 Shareholders' equity:
   Preferred stock .............................           --              --
   Common stock ................................         17,303          17,287
   Treasury stock ..............................        (14,970)        (13,811)
   Additional paid-in capital ..................          4,909           4,909
   Retained earnings ...........................        121,283         120,125
   Accumulated other comprehensive loss ........         (1,892)         (1,478)
                                                      ---------       ---------
     Total shareholders' equity ................        126,633         127,032
                                                      ---------       ---------
                                                      $ 306,292       $ 315,389
                                                      =========       =========
</TABLE>


The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
                                       3
<PAGE>

                             STEEL TECHNOLOGIES INC.
                   Condensed Consolidated Statements of Income
<TABLE>
<CAPTION>
(In thousands, except per share results)          Three Months Ended
(Unaudited)                                           December 31
---------------------------------------------------------------------
                                                    2000       1999
                                                  -------------------
<S>                                               <C>        <C>
Sales ........................................... $110,861   $104,890
Cost of goods sold ..............................   99,393     91,669
                                                  --------   --------
      Gross profit ..............................   11,468     13,221

Selling, general and administrative expenses ....    6,975      6,568
Equity in net income of unconsolidated
  corporate joint venture .......................      234        404
                                                  --------   --------
   Operating income .............................    4,727      7,057

Interest expense, net ...........................    1,888      1,344
                                                  --------   --------
   Income before income taxes ...................    2,839      5,713

Provision for income taxes ......................    1,057      2,062
                                                  --------   --------
    Net income .................................. $  1,782   $  3,651
                                                  --------   --------
Diluted weighted average number of
   common shares outstanding ....................   10,397     11,186
                                                  ========   ========

Diluted earnings per common share ............... $   0.17   $   0.33
                                                  ========   ========

Basic weighted average number of
   common shares outstanding ....................   10,388     11,095
                                                  ========   ========

Basic earnings per common share ................. $   0.17   $   0.33
                                                  ========   ========

Cash dividends per common share ................. $   0.06   $   0.06
                                                  ========   ========

</TABLE>


            Condensed Consolidated Statements of Comprehensive Income
<TABLE>
<CAPTION>

(In thousands)                                    Three Months Ended
(Unaudited)                                           December 31
---------------------------------------------------------------------
                                                     2000      1999
                                                  -------------------
<S>                                               <C>        <C>
Net income ...................................... $  1,782   $  3,651
    Foreign currency translation
        adjustment ..............................     (414)        26
                                                  --------   --------
Comprehensive income ............................ $  1,368   $  3,677
                                                  ========   ========
</TABLE>
The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.


                                       4
<PAGE>

                             STEEL TECHNOLOGIES INC.
                 Condensed Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
(In thousands)                                              Three months ended
(Unaudited)                                                     December 31
--------------------------------------------------------------------------------
                                                             2000       1999
                                                           ---------------------
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income .........................................   $  1,782    $  3,651
   Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
       Depreciation ...................................      3,529       3,182
       Amortization ...................................        184          94
       Deferred income taxes ..........................       (206)        137
       Equity in net income of unconsolidated corporate
         joint venture ................................       (234)       (404)
       Gain on sale of assets .........................       (212)        (19)
       Increase (decrease) in cash resulting from
         changes in:
             Trade accounts receivable ................      5,006)     (4,474)
             Inventories ..............................     (1,056)     (3,105)
             Prepaid expenses and other assets ........        (43)         48
             Accounts payable .........................        (22)       (379)
             Accrued liabilities and income taxes .....      1,944         (56)
                                                          ---------   ---------
Net cash provided by (used in) operating activities ...     10,672      (1,325)
                                                          ---------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property, plant and equipment .........     (3,012)     (5,772)
   Proceeds from sale of property, plant and equipment         650          55
                                                          ---------   ---------
Net cash used in investing activities .................     (2,362)     (5,717)
                                                          ---------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from long-term debt .......................        --       12,000
   Principal payments on long-term debt ...............    (10,174)       (168)
   Cash dividends on common stock .....................       (624)       (665)
   Repurchase of common stock .........................     (1,159)     (2,788)
   Net issuance of common stock .......................         16          16
                                                          ---------   ---------
Net cash (used in) provided by financing activities ...    (11,941)      8,395
                                                          ---------   ---------
Effect of exchange rate changes on cash ...............         (9)         21
                                                          ---------   ---------
Net (decrease) increase in cash and cash equivalents ..     (3,640)      1,374
Cash and cash equivalents, beginning of year ..........      4,469      12,578
                                                          ---------   ---------
Cash and cash equivalents, end of period ..............   $    829    $  8,395
                                                          =========   =========
Supplemental Cash Flow Disclosures:
Cash payment for interest .............................   $  2,200    $  1,719
                                                          ========    ========
Cash payment for income taxes .........................   $    144    $    364
                                                          ========    ========
</TABLE>

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.

                                       5
<PAGE>

                           STEEL TECHNOLOGIES INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.  BASIS OF PRESENTATION:

The  condensed  consolidated  balance  sheet  as of  December  31,  2000 and the
condensed consolidated statements of income, comprehensive income and cash flows
for the three months ended  December 31, 2000 and 1999 have been prepared by the
Company  without audit.  In the opinion of management,  all  adjustments  (which
include  only normal  recurring  adjustments)  necessary  to present  fairly the
financial  position,  results of operations  and cash flows at December 31, 2000
and for all periods presented have been made.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted.  It is suggested that these condensed  financial
statements  be read in  conjunction  with the  financial  statements  and  notes
thereto  included in the Company's  annual report to  shareholders  for the year
ended  September 30, 2000.  The results of operations  for the nine months ended
December 31, 2000 are not  necessarily  indicative of the operating  results for
the full year.

2.  INVENTORIES:

<TABLE>
<CAPTION>
Inventory consists of:
                                                     December 31   September 30
                                                        2000           2000
                                                     -----------   ------------
(In thousands)                                        Unaudited       Audited
-------------------------------------------------------------------------------
<S>                                                 <C>               <C>
Raw materials ....................................   $   57,974      $   59,951
Finished goods and work in process ...............       22,820          19,974
                                                     ----------      ----------
                                                     $   80,794      $   79,925
                                                     ==========      ==========
</TABLE>


                                       6
<PAGE>

3.  NET INCOME PER SHARE COMPUTATIONS:

The following is a  reconciliation  of the  denominator of the basic and diluted
per share computations:

<TABLE>
<CAPTION>

                                                          Three Months Ended
(In thousands, except per share results)                     December 31
-----------------------------------------------------------------------------
                                                             2000      1999
                                                          -------------------
<S>                                                       <C>       <C>
Net income .............................................. $ 1,782   $ 3,651
                                                          -------   -------
Shares (denominator) used for
  diluted per share computations:
    Weighted average shares of common stock outstanding .  10,388    11,095
    Plus: dilutive effect of stock options ..............       9        91
                                                          -------   -------
       Diluted weighted average shares                     10,397    11,186
                                                          -------   -------
Shares (denominator) used for
  basic per share computations:
    Weighted average shares of common stock outstanding .  10,388    11,095
                                                          -------   -------

Net income per share data:
    Diluted ............................................. $  0.17   $  0.33
                                                          =======   =======

    Basic ............................................... $  0.17   $  0.33
                                                          =======   =======
</TABLE>

Options to  purchase  627,500 and 70,000  shares at December  31, 2000 and 1999,
respectively  were  excluded  from the  calculations  above because the exercise
prices  on the  options  were  greater  than  the  average  market  price of the
Company's stock during the periods.

4.  INVESTMENTS IN UNCONSOLIDATED CORPORATE JOINT VENTURES

On January 22,  2001,  the Company  announced  it will record  certain  one-time
charges  relating to recent  strategic  initiatives  involving its joint venture
operations  during  the second  quarter  of fiscal  2001.  Mi-Tech  Steel,  Inc.
(Mi-Tech Steel), an unconsolidated  corporate joint venture accounted for by the
equity method, has committed to discontinue its Decatur, Alabama operation as of
March 31, 2001.  Mi-Tech Steel expects  current  orders to be filled through the
end of the second  quarter of fiscal  2001 at which time the assets  utilized in
that  facility  will be  offered  for sale.  In  accordance  with  Statement  of
Financial  Accounting  Standards  No. 121,  "Accounting  for the  Impairment  of
Long-Lived  Assets and for  Long-Lived  Assets to be Disposed  of," Mi-Tech will
record an impairment charge associated with this facility based on the Company's
estimates of fair value.

                                      7

<PAGE>

During the second  quarter of fiscal 2001, the Company will record an impairment
charge for its  investment in Processing  Technology  Inc.  (PTI) based upon the
deterioration in the financial  condition of the corporate joint venture and its
principal customer.

The Company estimates its equity in net losses of unconsolidated corporate joint
ventures for the second  quarter of fiscal 2001 will range from $7 million to $8
million  as a result  of the  impairment  charge  and net  operating  losses  at
Decatur, as well as the writedown of certain joint venture investments including
PTI.

5.  LONG-TERM DEBT

Under various debt agreements,  the Company agrees to maintain  specified levels
of working capital and net worth, maintain certain ratios and limit the addition
of substantial  debt.  None of these  covenants would restrict the completion of
currently  planned capital  expenditures.  The Company is in compliance with all
covenants  except for the current  ratio  required  under the private  placement
note. Under the line of credit agreement,  the definition of current liabilities
excludes the line of credit  borrowings.  However,  the private  placement  note
agreement  does not exclude  these  borrowings  from its  definition  of current
liabilities.  Since the line of credit  is  currently  due  December  31,  2001,
Statement of Financial Accounting Standards No. 6, "Classification of Short-Term
Obligations  Expected to Be  Refinanced,"  requires  the  classification  of the
Company's line of credit borrowings as a current  liability.  Management expects
the  noteholders  to amend  the  definition  of  current  ratio  in the  private
placement  note  agreement to be identical to the definition of current ratio in
the line of credit agreement. As a result of this amendment, management does not
expect the lenders to take any action.

At  December  31,  2000,  the  Company  had   $105,218,000   of  long-term  debt
outstanding,  of which  $105,090,000 is classified as a current  liability.  The
Company  classified  approximately  $99,000,000  of debt as a current  liability
because of the line of credit  maturity  date and covenant  violation  described
above.  If the Company  had  renewed its line of credit  facility on a long-term
basis as of December 31, 2000,  the current  portion of its debt would have been
$6,250,000.

                                      8
<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
                                 of Operations

When used in the  following  discussion,  the word  "expects"  and other similar
expressions are intended to identify forward-looking statements,  which are made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain risks
and  uncertainties  that could cause actual  results to differ  materially  from
those projected.  Specific risks and uncertainties  include, but are not limited
to, general business and economic conditions; cyclicality of demand in the steel
industry,  specifically  in the  automotive  market;  work  stoppages;  risks of
business interruptions affecting automotive  manufacturers;  competitive factors
such as pricing and availability of steel; reliance on key customers; ability to
integrate  acquisitions;  and  potential  equipment  malfunctions.  Readers  are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date  hereof.  The  Company  undertakes  no  obligation  to
republish  revised  forward-looking  statements  to reflect  the  occurrence  of
unanticipated events or circumstances after the date hereof.

Results of Operations
---------------------

Steel  Technologies  posted record first quarter sales of  $110,861,000  for the
fiscal  quarter  ended  December  31,  2000,  an  increase  of 6% from  sales of
$104,890,000  for the first  quarter  ended  December 31, 1999.  Tons shipped of
Company-owned  steel  products  in the first  quarter of fiscal  2001  increased
approximately  7% compared to the first quarter of fiscal 2000 while the average
selling price of Company-owned  steel products was relatively flat for the first
quarter of fiscal 2000 as compared to the previous year.  Custom Steel, Inc. and
Custom  Steel  Processing  Corp.,  collectively  Custom  Steel (now wholly owned
subsidiaries of the Company),  acquired on January 12, 2000, added $6,800,000 of
revenues  for the  first  quarter  of  fiscal  2001.  Sales  of  existing  Steel
Technologies steel processing operations decreased by approximately  $829,000 or
1% from a year ago.

The  Company  focuses  significant  resources  on the  automotive  industry  and
generates a major portion of business from selling manufacturing component parts
to the automotive industry.  The Company continues to increase market share with
both  existing  and new  customers  which  should help  mitigate  the effects of
slowing  demand levels in the automotive  industry.


                                       9
<PAGE>

The gross profit  margin was 10.3% in the first  quarter of fiscal 2001 compared
to 12.6% in the first quarter of fiscal 2000 primarily as a result of higher raw
material costs than the previous year's first quarter. Increases in raw material
costs occurred  primarily through the Company's second and third fiscal quarters
of 2000 and the higher costs  carried over to the first  quarter of fiscal 2001.
According  to  recent  public  announcements  of both  domestic  integrated  and
mini-mill  steel  suppliers,  the Company expects raw material costs to increase
somewhat in the next quarter.  Should raw material costs increase significantly,
gross  margins  could be  negatively  impacted as the Company does not expect to
fully pass along these increases to its customers.  In general,  production cost
efficiencies and product mix  improvements  may positively  impact gross margins
and somewhat offset rising raw material costs.

Steel  Technologies  continues  to actively  manage the level at which  selling,
general  and  administrative  costs  are added to its cost  structure.  Selling,
general  and  administrative  costs  increased  approximately  6% for the  first
quarter  of fiscal  2001  compared  to the first  fiscal  quarter  of 2000.  The
increase  in  selling,   general  and  administrative   expenses  was  primarily
attributable  to  additional  expenses  from the  addition  of Custom  Steel and
additional  marketing  expenses to support  sales  growth in South  Carolina and
Mexico.  Selling,  general and administrative  expenses as a percentage of sales
were 6.0% for the current  quarter  and for the  comparable  quarter  last year,
respectively.

The Company's  share of the income of Mi-Tech Steel,  Inc.,  (Mi-Tech  Steel) an
unconsolidated  corporate joint venture, was $234,000 and $404,000 for the first
quarter of fiscal 2001 and 2000, respectively. An increase in raw material costs
and a weaker steel market in the  southeastern  United States region serviced by
the Decatur,  Alabama operation have adversely impacted Mi-Tech's  profitability
for the first quarter of fiscal 2001 compared to 2000.

On January 22,  2001,  the Company  announced  it will record  certain  one-time
charges  relating to recent  strategic  initiatives  involving its joint venture
operations during the second quarter of fiscal 2001. Mi-Tech Steel has committed
to  discontinue  its Decatur,  Alabama  operation as of March 31, 2001.  Mi-Tech
Steel expects  current orders to be filled through the end of the second quarter
of fiscal  2001 at which  time the  assets  utilized  in that  facility  will be
offered for sale. In accordance with Statement of Financial Accounting Standards
No. 121,  "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed of," Mi-Tech will record an impairment  charge  associated
with this facility based on the Company's estimates of fair value.

During the second  quarter of fiscal 2001, the Company will record an impairment
charge for its  investment in Processing  Technology  Inc.  (PTI) based upon the
deterioration in the financial  condition of the corporate joint venture and its
principal customer.

The Company estimates its equity in net losses of unconsolidated corporate joint
ventures for the second  quarter of fiscal 2001 will range from $7 million to $8
million  as a result  of the  impairment  charge  and net  operating  losses  at
Decatur, as well as the writedown of certain joint venture investments including
PTI.

                                       10
<PAGE>

Net  interest  expense  for the  first  quarter  of fiscal  2001 was  $1,888,000
compared  to  $1,344,000  for the first  quarter  of fiscal  2000.  Increase  is
primarily  attributable to higher average  borrowings during the current quarter
as compared to last year.  Management  expects the recent actions by the Federal
Reserve  Board toward an easier  monetary  policy will result in lower  interest
rates paid by the Company on its line of credit in subsequent quarters.

The  Company's  effective  income  tax rate was  approximately  37.2% and 36.1%,
respectively,  for the first  quarters of fiscal 2001 and 2000.  The increase is
attributable mainly to a slightly higher effective tax rate in Mexico.

Liquidity and Capital Resources
-------------------------------

The  Company  continues  to  manage  the  levels  of  accounts  receivable,
inventories  and other working  capital items in relation to the trends in sales
and the  overall  market.  For the first  three  months of  fiscal  2001,  lower
accounts  receivable   contributed  to  the  $10,671,000  of  cash  provided  by
operations.  Cash flows from operations and available borrowing capabilities are
expected to meet the needs of the Company throughout fiscal 2001.

Capital  expenditures  for  the  first  three  months  of  fiscal  2001  totaled
approximately $3,000,000.  The major expenditures were for the completion of the
construction  of  Matamoros,   Mexico  facility  and  other  capacity  expansion
projects.  Steel  Technologies  continues  to  expand  production  capacity  and
processing facilities to serve the growing needs of customers.  For fiscal 2001,
the capital additions to all facilities are expected to approximate $12,000,000.

Steel Technologies  maintains an equity investment of approximately  $18,650,000
in its 90%-owned Mexican subsidiary.

As of January 1, 1999,  the Mexican  subsidiary  uses the peso as the functional
currency and the assets and liabilities of the Mexican subsidiary are translated
into U.S. dollars at the period end rate of exchange,  and revenues and expenses
are  translated  at average  rates of  exchanges  in effect  during the periods.
Resulting  translation  adjustments are reported as a component of comprehensive
income. Foreign currency transaction gains and losses are included in net income
when  incurred.  Prior to January 1, 1999,  the Mexican  economy was  considered
hyper-inflationary.  Accordingly,  the  Company  used the  monetary/non-monetary
method   of   accounting   for   foreign   currency   translation.   Under   the
monetary/non-monetary   method,   non-monetary   assets  and  liabilities   were
translated at historical  rates of exchange and the functional  currency was the
U.S. dollar.

Pursuant  to a  joint  venture  agreement,  Steel  Technologies  has  guaranteed
$8,250,000 of the bank financing  required for the working  capital  purposes of
Mi-Tech.  Additional equity  contributions to the joint venture are not expected
for the foreseeable future,  but, if required,  would be financed with available
funds from the Company's bank line of credit.


                                       11
<PAGE>

The Company has a $100,000,000 line of credit agreement expiring on December 31,
2001,  with various  variable  options on the interest  rate,  none of which are
greater than the bank's  prime.  During the first  quarter of fiscal  2001,  the
Company repaid  $10,176,000  in debt from its operating cash flows.  At December
31, 2000, there was $76,000,000 outstanding on the credit facility.

The  line of  credit  is  expected  to be  sufficient  to  finance  the  capital
expenditure  plans as well as the working  capital  needs for fiscal  2001.  Any
additional  funds will be used for  growth,  including  strategic  acquisitions,
investment in joint ventures, construction of new plant capacity, and investment
in production and processing  capabilities.  The form of such financing may vary
depending upon the  prevailing  market and related  conditions,  and may include
short or long-term borrowings or the issuance of debt or equity securities.

At this time,  the Company has no known  material  obligations,  commitments  or
demands  that must be met beyond the next twelve  months other than the ten-year
private  placement note and the unsecured bank lines of credit.  The Company has
approximately  $28,560,000 outstanding at December 31, 2000 on the ten-year note
which requires annual  principal  payments  through March 2005.  Consistent with
prior years,  the  $100,000,000  line of credit is expected to be renewed at the
end of the term on a  long-term  basis.  However,  the  Company is  required  to
classify  this  obligation  as a  current  liability  until  such  agreement  is
finalized.

As of  December  31,  2000,  Steel  Technologies  had  ($11,185,000)  of working
capital,  maintained  a  current  ratio  of .9:1  and had  total  debt at 47% of
capitalization.  If the Company  had  renewed  its line of credit  facility on a
long-term  basis as of December 31, 2000, the current  portion of its debt would
have  been  $6,250,000  instead  of  $105,090,000  and the  Company  would  have
$87,655,000 of working capital and a current ratio of 2.5:1.

Under various debt agreements,  the Company agrees to maintain  specified levels
of working capital and net worth, maintain certain ratios and limit the addition
of substantial  debt.  None of these  covenants would restrict the completion of
currently  planned capital  expenditures.  The Company is in compliance with all
covenants  except for the current  ratio  required  under the private  placement
note. Under the line of credit agreement,  the definition of current liabilities
excludes the line of credit  borrowings.  However,  the private  placement  note
agreement  does not exclude  these  borrowings  from its  definition  of current
liabilities.  Since the line of credit  is  currently  due  December  31,  2001,
Statement of Financial Accounting Standards No. 6, "Classification of Short-Term
Obligations  Expected to Be  Refinanced,"  requires  the  classification  of the
Company's line of credit borrowings as a current  liability.  Management expects
the  noteholders  to amend  the  definition  of  current  ratio  in the  private
placement  note  agreement to be identical to the definition of current ratio in
the line of credit agreement. As a result of this amendment, management does not
expect the lenders to take any action.


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<PAGE>

At December 31, 2000,  Steel  Technologies  had  $105,218,000  of long-term debt
outstanding,  of which  $105,090,000 is classified as a current  liability.  The
Company  classified  approximately  $99,000,000  of debt as a current  liability
because of the line of credit  maturity  date and covenant  violation  described
above.  If the Company  had  renewed its line of credit  facility on a long-term
basis as of December 31, 2000,  the current  portion of its debt would have been
$6,250,000.

On January 22, 1998,  the Board of  Directors  approved a plan under which Steel
Technologies   may  repurchase  up  to  500,000  shares  of  its  common  stock.
Subsequently,  the Board of Directors  authorized  repurchase  of an  additional
1,000,000 shares on September 30, 1998 and another  additional  1,000,000 shares
on April 30, 2000 for a total of 2,500,000 shares.  Shares may be purchased from
time to time at prevailing prices in open market transactions, subject to market
conditions,  share price and other  considerations.  From the  inception  of the
program, the Company repurchased approximately 1,785,000 shares of common stock,
including 214,600 during the first three months of fiscal 2001.

Steel Technologies believes all manufacturing  facilities are in compliance with
applicable  federal  and state  environmental  regulations.  The  Company is not
presently aware of any fact or circumstance, which would require the expenditure
of material amounts for environmental compliance.

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<PAGE>

       Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material  change during the first three months ended  December
31, 2000 from the disclosures about market risk provided in the Company's Annual
Report on Form10-K for the year ended September 30, 2000.

                           Part II - Other Information

           Item 4. Submission of Matters to a Vote of Security Holders

The annual  meeting of  shareholders  was held on January 25,  2001.  The matter
voted upon at the meeting was the  election of three  directors  for  three-year
terms.

The number of votes cast for,  against or withheld  with respect to each nominee
for director elected at the meeting were as follows:

Nominee               Votes For       Votes Against     Votes Withheld

Michael J. Carroll    9,047,578             0               158,642
Howard F. Bates, Jr.  9,047,701             0               158,519
William E. Hellmann   9,015,416             0               190,804


SIGNATURES

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



STEEL TECHNOLOGIES INC.
            (Registrant)







  By  _____________________________
              Joseph P. Bellino
            Chief Financial Officer
           (Principal Financial and
           Chief Accounting Officer)


Dated February 14, 2001


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