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, 2002

                                       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 9,760,379 shares  outstanding of the Registrant's  common stock as of
January 31, 2003.



                                       1
<PAGE>





                             STEEL TECHNOLOGIES INC.

                                      INDEX



                                                                     Page Number
PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Consolidated Balance Sheets December 31, 2002
        (Unaudited) and September 30, 2002 (Audited) ......................   3

        Condensed Consolidated Statements of Income and Comprehensive
        Income Three Months Ended December 31, 2002 and 2001 (Unaudited) ..   4

        Condensed Consolidated Statements of Cash Flows
        Three Months Ended December 31, 2002 and 2001 (Unaudited) .........   5

        Notes to Condensed Consolidated Financial Statements (Unaudited) .. 6- 9

Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations .............................................10-14

Item 3. Quantitative and Qualitative Disclosures About Market
        Risk ..............................................................  15

Item 4. Controls and Procedures............................................  15

PART II.    OTHER INFORMATION

Item 5. Submission of Matters to a Vote of Security Holders ...............  16

SIGNATURES ................................................................  16

Certifications.............................................................17-18

                                       2
<PAGE>

                         Part I. - FINANCIAL INFORMATION
                          Item 1. Financial Statements

                             STEEL TECHNOLOGIES INC.
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
(In thousands)                                       December 31    September 30
--------------------------------------------------------------------------------
                                                         2002            2002
                                                      (Unaudited)     (Audited)
                                                 -------------------------------
<S>                                                   <C>             <C>
ASSETS
Current assets:
   Cash and cash equivalents ...................      $   2,808       $   2,127
   Trade accounts receivable, net ..............         65,892          74,000
   Inventories .................................        116,933          87,741
   Deferred income taxes .......................          1,800           1,841
   Prepaid expenses and other assets ...........          2,590           2,789
                                                      ---------       ---------
      Total current assets .....................        190,023         168,498

Property, plant and equipment, net .............        100,358         102,560
Investments in corporate joint ventures ........         16,915          16,590
Goodwill .......................................         18,148          18,148
Other assets ...................................          1,502           1,319
                                                      ---------       ---------
                                                      $ 326,946       $ 307,115
                                                      =========       =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable ............................      $  52,435       $  65,466
   Accrued liabilities .........................         13,419          12,922
   Income taxes payable ........................          2,394           2,158
   Long-term debt due within one year ..........          5,744           5,759
                                                      ---------       ---------
      Total current liabilities ................         73,992          86,285

Long-term debt .................................        104,400          74,900
Deferred income taxes ..........................         14,075          14,200
                                                      ---------       ---------
      Total liabilities ........................        192,467         175,385
                                                      ---------       ---------
Commitments and contingencies

 Shareholders' equity:
   Preferred stock, no par value: 500,000 shares
    authorized; none issued or outstanding.....            --              --
   Common stock, no par value: 50,000,000 shares
    authorized; issued and outstanding sares:
    9,725,434 at December 31, 2002 and
    9,663,468 at September 30, 2002.............         19,810          18,733
   Treasury stock at cost:  2,557,455 shares at
    December 31, 2002 and 2,518,645 at September
    30, 2002....................................        (22,871)        (22,090)
   Additional paid-in capital ..................          4,909           4,909
   Retained earnings ...........................        136,687         133,869
   Accumulated other comprehensive loss ........         (4,056)         (3,691)
                                                      ---------       ---------
     Total shareholders' equity ................        134,479         131,730
                                                      ---------       ---------
                                                      $ 326,946       $ 307,115
                                                      =========       =========
</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
--------------------------------------------------------------------------------
                                                             2002          2001
                                                           ---------------------

<S>                                                        <C>          <C>
Sales ................................................     $126,009    $101,576
Cost of goods sold ...................................      112,239      90,673
                                                           --------    --------
     Gross profit ....................................       13,770      10,903

Selling, general and administrative expenses .........        7,132       7,152
Equity in net income of unconsolidated
  corporate joint ventures ...........................          325         353
                                                           --------    --------
  Operating income ...................................        6,963       4,104

Interest expense, net ................................        1,202       1,423
Loss (gain) on disposals/writeoffs of property, plant
   and equipment......................................          115        (346)
                                                           --------    --------
   Income before income taxes ........................        5,646       3,027

Provision for income taxes ...........................        1,856       1,163
                                                           --------    --------
   Net income ........................................     $  3,790    $  1,864
                                                           ========    ========
Weighted average number of common
   shares outstanding-diluted ........................        9,962      10,244
                                                           ========    ========
Diluted earnings per common share ....................     $   0.38    $   0.18
                                                           ========    ========
Weighted average number of common
   shares outstanding-basic ..........................        9,706      10,167
                                                           ========    ========
Basic earnings per common share ......................     $   0.39    $   0.18
                                                           ========    ========
Cash dividends per common share ......................     $   0.10    $   0.08
                                                           ========    ========
</TABLE>


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

(In thousands)                                              Three Months Ended
(Unaudited)                                                     December 31
--------------------------------------------------------------------------------
                                                             2002          2001
                                                           ---------------------
<S>                                                        <C>          <C>
Net income ...........................................     $ 3,790      $ 1,864
   Foreign currency translation adjustment............        (431)        (262)
   Change in unrealized gain (loss) on cash flow
      hedges, net of taxes ...........................          66          (17)
                                                           --------     --------
Comprehensive income .................................     $ 3,425      $ 1,585
                                                           ========     ========
</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
--------------------------------------------------------------------------------
                                                             2002       2001
                                                           ---------------------
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income .........................................   $  3,790    $  1,864
   Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
       Depreciation ...................................      3,404       3,634
       Amortization ...................................         -          184
       Deferred income taxes ..........................        (72)        890
       Equity in net income of unconsolidated corporate
        joint ventures ................................       (325)       (353)
       Loss (gain) on disposals/writeoffs of property,
        plant and equipment ...........................        115        (346)
       Increase (decrease) in cash resulting from
         changes in:
             Trade accounts receivable ................      7,880       9,073
             Inventories ..............................    (29,385)     (1,848)
             Prepaids expenses and other assets .......        (19)        (48)
             Accounts payable .........................    (12,906)     (1,717)
             Accrued liabilities and income taxes .....        935         398
                                                          --------    --------
Net cash (used in) provided by operating activities ...    (26,583)     11,731
                                                          --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property, plant and equipment .........     (1,802)     (1,024)
   Proceeds from sale of property, plant and equipment         292         774
                                                          --------    --------
Net cash used in investing activities .................     (1,510)       (250)
                                                          --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from long-term debt .......................     29,500         -
   Principal payments on long-term debt ...............        (15)    (10,177)
   Cash dividends on common stock .....................       (972)       (813)
   Repurchase of common stock .........................       (781)       (452)
   Net issuance of common stock under stock
     option plans......................................      1,077          15
                                                          --------    --------
Net cash provided by (used in) financing activities ...     28,809     (11,427)
                                                          --------    --------
Effect of exchange rate changes on cash ...............        (35)        (34)
                                                          --------    --------
Net increase in cash and cash equivalents .............        681          20
Cash and cash equivalents, beginning of year ..........      2,127       3,380
                                                          --------    --------
Cash and cash equivalents, end of period ..............   $  2,808    $  3,400
                                                          ========    ========
Supplemental Cash Flow Disclosures:
Cash payment for interest .............................   $  1,123    $  1,519
                                                          ========    ========
Cash payment for income taxes .........................   $  1,400    $    494
                                                          ========    ========
</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,  2002 and the
condensed consolidated statements of income, comprehensive income and cash flows
for the three months ended  December 31, 2002 and 2001 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, 2002
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, 2002.  The results of operations for the three months ended
December 31, 2002 are not  necessarily  indicative of the operating  results for
the full year.


2.  INVENTORIES:

<TABLE>
<CAPTION>
Inventory consists of:
                                                     December 31   September 30
                                                        2002           2002
                                                     -----------   ------------
(In thousands)                                        Unaudited       Audited
-------------------------------------------------------------------------------
<S>                                                 <C>               <C>
Raw materials ....................................   $   87,620   $   66,535
Finished goods and work in process ...............       29,313       21,206
                                                     ----------   ----------
                                                     $  116,933   $   87,741
                                                     ==========   ==========
</TABLE>


3.  LONG-TERM DEBT

During the first quarter of fiscal 2003, the Company  extended the maturity date
of its $125,000,000 bank line of credit to August 31, 2005.

                                       6
<PAGE>
4.  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
--------------------------------------------------------------------------------
                                                             2002        2001
                                                          ----------------------
<S>                                                       <C>         <C>
Net income ............................................   $   3,790   $   1,864
                                                          ---------   ---------
Shares (denominator) used for diluted
   per share computations:
    Weighted average shares of common  stock
        outstanding ...................................       9,706      10,167
    Plus: dilutive effect of stock options ............         256          77
                                                          ---------   ---------
           Diluted weighted average shares ............   $   9,962      10,244
                                                          ---------   ---------
Shares (denominator) used for basic per
   share computations:
   Weighted average shares of common stock
       outstanding ....................................       9,706      10,167
                                                          ---------   ---------
Net income per share data:
    Diluted ...........................................   $    0.38   $    0.18
                                                          =========   =========
    Basic .............................................   $    0.39   $    0.18
                                                          =========   =========
</TABLE>
     All  outstanding  options are  included in the diluted  earnings  per share
     calculation  above for the quarter  ended  December  31,  2002.  Options to
     purchase  567,500  shares  at  December  31,  2001 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 that period.

                                        7
<PAGE>
5.  GOODWILL

The Company adopted Statement of Financial Accounting Standard No. 142 (SFAS No.
142),  "Goodwill and Other Intangible  Assets"  effective October 1, 2002. Under
SFAS No.  142,  goodwill  is no longer  amortized  but is tested for  impairment
annually using a fair-value  based  approach.  During the quarter ended December
31, 2002, the Company  performed the initial  impairment test of goodwill and no
impairments were indicated.

The following  table adjusts  reported net income and earnings per share for the
three  months  ended  December  31,  2002 and 2001 to  exclude  amortization  of
goodwill:

<TABLE>
<CAPTION>

                                                            Three Months Ended
(In thousands, except per share results)                        December 31
--------------------------------------------------------------------------------
                                                             2002        2001
                                                          ----------------------
<S>                                                       <C>         <C>
Net income as reported.................................   $   3,790   $   1,864
Add back amortization of goodwill......................         -           184
                                                          ---------   ---------
Adjusted net income....................................   $   3,790   $   2,048
                                                          ---------   ---------

Earnings per common share as reported - diluted........   $    0.38   $    0.18
Add back amortization of goodwill......................         -          0.02
                                                          ---------   ---------
Adjusted earnings per common share - diluted...........   $    0.38   $    0.20
                                                          ---------   ---------

Earnings per common share as reported - basic..........   $    0.39   $    0.18
Add back amortization of goodwill......................         -          0.02
                                                          ---------   ---------
Adjusted earnings per common share - basic.............   $    0.39   $    0.20
                                                          ---------   ---------
</TABLE>
6.  RELATED PARTIES

Summarized  condensed  income  statement  information of Mi-Tech Steel,  Inc., a
fifty percent owned corporate joint venture  accounted for by the equity method,
follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended
        (Unaudited)                                          December 31
        -----------------------------------------------------------------------
                                                       2002             2001
                                                    -----------     -----------
        <S>                                         <C>             <C>
        Sales                                       $32,014,000     $32,574,000
        Net Income                                      500,000         706,000
</TABLE>
                                       8
<PAGE>
The  Company has various  transactions  with  Mi-Tech  Steel,  Inc.  Included in
operating  income of the Company are  management  fees and equity from the joint
venture earnings  totaling $424,000 and $527,000 for the quarters ended December
31, 2002 and 2001,  respectively.  The  Company's  equity in  undistributed  net
income of Mi-Tech Steel, Inc. was $5,881,000 and $4,677,000 at December 31, 2002
and 2001, respectively.

The Company has  recorded  sales of  $1,489,000  and  $842,000  during the first
quarters of fiscal  2003 and 2002,  respectively,  and  accounts  receivable  of
$872,000  and  $1,029,000  as of  December  31,  2002 and  September  30,  2002,
respectively, for products sold to a company owned by an officer and director of
the Company.  The Company believes these  transactions are in the best interests
of the Company and the terms and  conditions  of these  transactions  are in the
aggregate not materially more favorable or unfavorable to the Company than would
be  obtained  on an arm's  length  basis  from  unaffiliated  parties.  See also
information  contained under "Certain  Transactions" in the Company's 2003 Proxy
Statement.

7.  IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2002, the FASB issued Statement of Financial Accounting Standards (SFAS)
No. 146,  "Accounting for Exit or Disposal  Activities."  SFAS No. 146 addresses
the  recognition,  measurement,  and reporting of costs that are associated with
exit and disposal  activities,  including  certain lease  termination  costs and
severance-type costs under a one-time benefit arrangement rather than an ongoing
benefit arrangement or an individual  deferred-compensation  contract.  SFAS No.
146  requires  liabilities  associated  with exit or disposal  activities  to be
expensed  as  incurred  and will  impact the timing of  recognition  for exit or
disposal activities that are initiated after December 31, 2002. The Company will
apply the  provisions of SFAS No. 146 to any future exit or disposal  activities
that are initiated after December 31, 2002.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation - Transition and Disclosure." SFAS 148 provides alternative methods
of  transition  for a  voluntary  change  to the  fair  value  based  method  of
accounting for  stock-based  employee  compensation.  In addition,  SFAS No. 148
amends the disclosure  requirements of SFAS No. 123, "Accounting for Stock-Based
Compensation,"  to require more prominent and frequent  disclosures in financial
statement about the effects of stock-based compensation. The transition guidance
and annual disclosure  provisions of SFAS No. 148 are effective for fiscal years
ending after  December 15, 2002,  while the interim  disclosure  provisions  are
effective for periods  beginning  after  December 15, 2002.  As  permitted,  the
Company  will  continue  to  follow  the  accounting  guidelines  of  Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," for
stock-based compensation and to furnish the pro forma disclosures required under
SFAS No. 148. The Company will make the required disclosures  beginning with our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2003.

                                       9
<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.

Application of Critical Accounting Policies
-------------------------------------------

The Company's  discussion and analysis of its financial condition and results of
operations are based upon the Company's consolidated financial statements, which
have been prepared in accordance with generally accepted accounting  principles.
The  preparation  of these  financial  statements  requires  management  to make
estimates  and  assumptions  that affect the amounts  reported in the  financial
statements.  Actual results could differ from these  estimates  under  different
assumptions  or  conditions.  On an ongoing  basis,  the  Company  monitors  and
evaluates its estimates and assumptions.

The Company believes the following critical  accounting policies affect its more
significant  judgments and estimates used in the preparation of its consolidated
financial statements and the consolidated financial statements of Mi-Tech Steel,
Inc.:

     Allowance for Doubtful Accounts Receivable
     ------------------------------------------

     The Company  maintains an allowance  for  doubtful  accounts for  estimated
     losses  resulting  from the  inability of its  customers  to make  required
     payments.  The allowance is maintained  at a level  considered  appropriate
     based on  historical  and other  factors  that affect  collectibility.  The
     factors  include  historical  trends of  write-offs,  recoveries and credit
     losses;  the  monitoring  of  portfolio  credit  quality;  and  current and
     projected economic and market conditions. If the financial condition of the
     Company's customers were to deteriorate,  resulting in an impairment of the
     ability to make payments, additional allowances may be required.


                                       10
<PAGE>

     Impairment of Long-Lived Assets
     -------------------------------

     The  Company  reviews  the  carrying  value of its  long-lived  assets  for
     impairment  whenever changes in events and circumstances  indicate that the
     carrying amount of the assets may not be  recoverable.  If an evaluation is
     required,  the estimated future  undiscounted cash flows associated with an
     asset would be compared to the asset's  carrying  value to  determine  if a
     write-down  to market value or  undiscounted  cash flows value is required.
     Future changes in  circumstances,  cash flow estimates and fair value could
     affect the valuations.

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

Steel  Technologies  posted first quarter sales of  $126,009,000  for the fiscal
quarter ended  December 31, 2002, an increase of 24% from sales of  $101,576,000
for the first quarter  ended  December 31, 2001.  Tons shipped of  Company-owned
steel products in the first quarter of fiscal 2003 increased  approximately  10%
compared to the first quarter of fiscal 2002 while the average  selling price of
Company-owned  steel products increased  approximately 13% for the first quarter
of fiscal 2003 as compared to the previous year.

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.

The gross profit  margin was 10.9% in the first  quarter of fiscal 2003 compared
to 10.7% in the first quarter of fiscal 2002.  The company  expects  average raw
material  costs in fiscal 2003 to exceed  average raw  material  costs in fiscal
2002. In general,  production cost efficiencies and product mix improvements may
positively impact gross margins and somewhat offset rising raw material costs.

Selling,  general and administrative  costs were $7,132,000 or 5.6% of sales for
the first  quarter  ended  December 31, 2002,  compared to $7,152,000 or 7.0% of
sales for the first  quarter  ended  December  31,  2001.  Selling,  general and
administrative costs for the first fiscal quarter of 2001 included approximately
$184,000 of goodwill  expense  (see Note 5 of the  Company's  Notes to Condensed
Consolidated  Financial  Statements).  Steel Technologies  continues to actively
manage the level at which selling, general and administrative expenses are added
to its cost structure.

The Company's  share of the income of its joint venture  operations was $325,000
and $353,000 for the first quarter of fiscal 2003 and 2002, respectively.

Net  interest  expense  for the  first  quarter  of  fiscal  2003  decreased  to
$1,202,000 from $1,423,000 for the first quarter of fiscal 2002. The decrease is
primarily  attributable  to lower  average  interest  rates  during the  current
quarter as compared to last year offset by higher average  borrowings during the
first quarter of fiscal 2003.


                                      11
<PAGE>

Excluding non-deductible goodwill amortization expense of approximately $184,000
recorded  during the first  quarter of fiscal 2002 (see Note 5 of the  Company's
Notes to Condensed Consolidated  Financial Statements),  the Company's effective
income tax rate was approximately 32.9% and 36.2%,  respectively,  for the first
quarters of fiscal 2003 and 2002.  The decrease is  attributable  primarily to a
non-recurring  state  income  tax  benefit  recorded  during the  quarter  ended
December 31, 2002. The Company  estimates its effective  income tax rate will be
approximately 37% for fiscal 2003.

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

As of December 31, 2002, Steel Technologies had $116,031,000 of working capital,
maintained a current ratio of 2.6:1 and had total debt at 45% of capitalization.
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.  During the first quarter of fiscal 2003, the Company  increased
inventory  levels and  improved  payment  days to its  suppliers.  This  working
capital  increase  has  been  financed  primarily  through  borrowings  from the
Company's  line  of  credit   facility.   These  primary   factors   contributed
significantly  to the  $26,584,000  of cash used in operations  during the first
three months of fiscal 2003 compared to cash provided by operating activities of
$11,731,000 for the first three months of fiscal 2002.

Capital  expenditures  for  the  first  three  months  of  fiscal  2003  totaled
approximately  $1,802,000.  The major  expenditures  were for  various  capacity
improvement projects. Steel Technologies continues to expand production capacity
and  processing  facilities to serve the growing needs of customers.  For fiscal
2003,  the capital  additions  to all  facilities  are  expected to  approximate
$15,000,000.

Steel Technologies  maintains an equity investment of approximately  $18,885,000
in its 90%-owned  Mexican  subsidiary.  Additional  investments in the Company's
Mexican operations, if required, would be financed with available funds from the
Company's bank line of credit.

The translation of the financial  statements of the Company's Mexican subsidiary
from local  currencies  to the U.S.  dollar  subjects  the  Company to  exposure
relating to  fluctuating  exchange  rates.  However,  this exposure is mitigated
somewhat by a large  percentage of transactions  denominated in the U.S. dollar.
Management  does not consider its exposure to exchange rate risks to be material
and considers the Mexican peso a relatively  stable  currency.  The Company does
not typically manage its related foreign currency exchange rate risk through the
use of  financial  instruments.  Foreign  currency  transaction  gains  (losses)
included in sales were $113,000 and ($234,000)  during the first three months of
fiscal 2003 and 2002, respectively.

The Company  maintains a 50% equity investment in Mi-Tech Steel and a 49% equity
investment in Ferrolux Metals Co., LLC.  Additional equity  contributions to the
Company's joint venture operations are not expected for the foreseeable  future,
but, if



                                       12
<PAGE>

required, would be financed with available funds from the Company's bank line of
credit.

The  Company  has a  $125,000,000  line of credit  agreement.  During  the first
quarter  of  fiscal  2003,  the  Company  extended  the  maturity  date  of  its
$125,000,000  bank line of credit to August 31, 2005.  The credit  agreement has
various  variable  options on the interest rate,  none of which are greater than
the bank's prime.  During the first quarter of fiscal 2003, the Company borrowed
$29,500,000 on its line of credit facility to support its working capital needs.
At December 31, 2002, there was $93,000,000 outstanding on the credit facility.

Cash flows from operations and available borrowing  capabilities are expected to
meet the needs of the Company  throughout fiscal 2003. 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.  Operating  cash flows
are  somewhat  influenced  by  cyclicality  of  demand  in the  steel  industry,
especially in the automotive market.

The Company has  $17,120,000  outstanding  at December  31, 2002 on the ten-year
note which  requires  annual  principal  payments  of  approximately  $5,700,000
through March 2005.

Provisions  contained  in the  Company's  various  debt  agreements  require the
Company to maintain  specified levels of net worth,  maintain certain  financial
ratios and limit the addition of substantial  debt. The Company's line of credit
agreement  and private  placement  note contain  cross-default  provisions  with
respect to the line of credit agreement and private  placement note. The Company
is in compliance  with all of its loan  covenants,  and none of these  covenants
would  restrict the  completion of currently  planned  capital  expenditures  or
acquisitions.

At this time, the Company has no other known material  obligations,  commitments
or demands that must be met beyond the next twelve months.

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.

                                       13
<PAGE>
Related Party Transactions
--------------------------

The Company has various  transactions  with Mi-Tech  Steel as well as sales to a
company  owned by an officer  and  director  of the  Company  (see Note 6 of the
Company's Notes to Condensed Consolidated Financial Statements).

Impact of Recently Issued Accounting Pronouncements
---------------------------------------------------

In June 2002, the FASB issued Statement of Financial Accounting Standards (SFAS)
No. 146,  "Accounting for Exit or Disposal  Activities."  SFAS No. 146 addresses
the  recognition,  measurement,  and reporting of costs that are associated with
exit and disposal  activities,  including  certain lease  termination  costs and
severance-type costs under a one-time benefit arrangement rather than an ongoing
benefit arrangement or an individual  deferred-compensation  contract.  SFAS No.
146  requires  liabilities  associated  with exit or disposal  activities  to be
expensed  as  incurred  and will  impact the timing of  recognition  for exit or
disposal activities that are initiated after December 31, 2002. The Company will
apply the  provisions of SFAS No. 146 to any future exit or disposal  activities
that are initiated after December 31, 2002.

In December  2002,  the FASB issued SFAS No. 148,  "Accounting  for  Stock-Based
Compensation - Transition and Disclosure." SFAS 148 provides alternative methods
of  transition  for a  voluntary  change  to the  fair  value  based  method  of
accounting for  stock-based  employee  compensation.  In addition,  SFAS No. 148
amends the disclosure  requirements of SFAS No. 123, "Accounting for Stock-Based
Compensation,"  to require more prominent and frequent  disclosures in financial
statement about the effects of stock-based compensation. The transition guidance
and annual disclosure  provisions of SFAS No. 148 are effective for fiscal years
ending after  December 15, 2002,  while the interim  disclosure  provisions  are
effective for periods  beginning  after  December 15, 2002.  As  permitted,  the
Company  will  continue  to  follow  the  accounting  guidelines  of  Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," for
stock-based compensation and to furnish the pro forma disclosures required under
SFAS No. 148. The Company will make the required disclosures  beginning with our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2003.

                                       14

<PAGE>

       Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material  change during the first three months ended  December
31, 2002 from the disclosures about market risk provided in the Company's Annual
Report on Form 10-K for the year ended September 30, 2002.


                        Item 4. Controls and Procedures

Within 90 days prior to the filing date of this  report,  management,  including
the Company's Chief Executive Officer and Chief Financial Officer, evaluated the
effectiveness of the design and operation of the Company's  disclosure  controls
and  procedures  with  respect  to the  information  generated  for  use in this
Quarterly Report on Form 10-Q.  Based upon that evaluation,  the Company's Chief
Executive  Officer and Chief  Financial  Officer  concluded  that the disclosure
controls  and  procedures  are  effective  to ensure that  material  information
required to be disclosed  in the reports we file or submit under the  Securities
Exchange Act of 1934 is made known to us by others within the Company, including
its  consolidated  subsidiaries.

There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their   evaluation  or  any  corrective   actions  with  regard  to  significant
deficiencies or material weaknesses.























                                       15

<PAGE>
                           Part II - Other Information

           Item 5. Submission of Matters to a Vote of Security Holders

The annual  meeting of  shareholders  was held on January 23,  2003.  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
-------             ---------         -------------     --------------

Jimmy Dan Conner    8,812,637               0               145,268
Andrew J. Payton    8,814,069               0               143,836
Mark Essig          8,791,827               0               166,078



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      /s/ Joseph P. Bellino
          -----------------------------
          Joseph P. Bellino
          Chief Financial Officer
          (Principal Financial and Chief Accounting Officer)




Dated February 6, 2003

                                       16

<PAGE>
                                 CERTIFICATIONS
I, Bradford T. Ray, certify that:

1. I have  reviewed  this  quarterly  report on Form 10-Q of Steel  Technologies
Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3. Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the  registrant  and have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     b) evaluated the effectiveness of the registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     c)  presented  in  this  quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officer and I have disclosed,  based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6. The  registrant's  other  certifying  officer  and I have  indicated  in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: February 6, 2003

/s/ Bradford. T. Ray
--------------------
Bradford T. Ray
Chief Executive Officer

                                       17
<PAGE>

I, Joseph P. Bellino, certify that:

1. I have  reviewed  this  quarterly  report on Form 10-Q of Steel  Technologies
Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3. Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the  registrant  and have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     b) evaluated the effectiveness of the registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     c)  presented  in  this  quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5. The registrant's other certifying officer and I have disclosed,  based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6. The  registrant's  other  certifying  officer  and I have  indicated  in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.

Date: February 6, 2003

/s/ Joseph P. Bellino
---------------------
Joseph P. Bellino
Chief Financial Officer

                                       18