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 June 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 0-14061


                         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)

                                                                      
 (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 preceeding 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 11,986,345 shares outstanding of the Registrant's common 
stock as of July 31, 1997.

                         Page 1 of 13

                      STEEL TECHNOLOGIES INC.

                             INDEX


                                                        Page Number   
PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

           Condensed Consolidated Balance Sheets
           June 30, 1997 (Unaudited) and
           September 30, 1996 (Audited)                     3

           Condensed Consolidated Statements of Income
           Three months and nine months ended
           June 30, 1997 and 1996 (Unaudited)               4  

           Condensed Consolidated Statements of Cash
           Flows Nine months ended June 30, 1997
           and 1996 (Unaudited)                             5

           Notes to Condensed Consolidated
           Financial Statements (Unaudited)                 6-7
                                                                      


Item 2.    Management's Discussion and Analysis of
           Financial Condition and Results of Operations    8-12



PART II.   OTHER INFORMATION

           

Item 6.    Exhibits and Reports on Form 8-K                12


                                       
                           Page 2 of 13

                        Part I. - FINANCIAL INFORMATION
                        Item 1. Financial Statements

                        STEEL TECHNOLOGIES INC.
                Condensed Consolidated Balance Sheets
                        (Amounts in thousands)
<TABLE>
<CAPTION>                                                                                                   
                                     June 30,            September 30, 
                                                                                                    
                                        1997                  1996
                                                                                                  
                                    (Unaudited)            (Audited)
----------------------------------------------------------------------
ASSETS                                                                  
<S>                                <C>                      <C> 
Current assets:
  Cash and cash equivalents          $    8,562             $    4,218
  Trade accounts receivable, net         49,017                 39,732
  Inventories                            76,319                 59,374
  Deferred income taxes                   1,848                  1,631
  Prepaid expenses and other assets       1,043                    369
                                        -------                -------
     Total current assets               136,789                105,324
                                        -------                -------
                                                                        
Property, plant and equipment, net      103,360                100,017
                                        -------                -------
Investments in corporate joint ventures  17,096                 11,016
                                        -------                -------
Goodwill, net of amortization             5,189                    -      
                                        -------                -------
Other assets                                667                    784
                                        -------                -------

                                      $ 263,101              $ 217,141
                                        =======                =======
   LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                    $   41,118              $  34,528
 Accrued liabilities                      6,187                  4,843
 Accrued income taxes                        47                    303
 Long-term debt due within one year      22,197                    385
                                      ---------               --------
   Total current liabilities             69,549                 40,059
                                      ---------               --------
                                                                       
Long-term debt                           75,271                 67,260
                                      ---------               --------
Deferred income taxes                    11,181                  8,461
                                      ---------               -------- 
Commitments and contingencies
                                                                       
 Shareholders' equity:

 Preferred stock                           -                       -
 Common stock                            16,821                 16,662
 Additional paid-in capital               4,909                  4,909
 Retained earnings                       86,928                 81,161
 Foreign currency translation adjustment (1,558)                (1,371)
                                        -------                -------
                                        107,100                101,361
                                        -------                -------

                                      $ 263,101              $ 217,141
</TABLE>                                =======                =======

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


                              Page 3 of 13

                        STEEL TECHNOLOGIES INC.
                Condensed Consolidated Statements of Income
         (Amounts in thousands, except per share data, unaudited)

<TABLE>
<CAPTION>
												
                                 Three months ended      Nine months ended
                                       June 30,               June 30,

                                 1997          1996      1997          1996
----------------------------------------------------------------------------
<S>                           <C>          <C>        <C>         <C>
Sales                          $101,082     $ 76,623  $ 258,912    $ 218,960
Cost of goods sold               90,242       65,803    230,396      188,649
                                -------     --------    -------      -------
     Gross profit                10,840       10,820     28,516       30,311
                                -------     --------    -------      -------


Selling, general and
  administrative expenses         5,368        4,799     14,646       14,051
Equity in net income of
  unconsolidated corporate
  joint venture                     377          475      1,080        1,207
                                -------        -----    -------      -------
  Operating income                5,849        6,496     14,950       17,467
                                -------        -----    -------      -------

                                                                            
Interest expense                  1,585        1,297      4,085        3,759
                                -------        -----    -------      -------
   Income before income taxes     4,264        5,199     10,865       13,708
                                             
Provision for income taxes        1,500        1,866      3,901        4,899
                                -------        -----    -------      -------
   Net income                  $  2,764     $  3,333  $   6,964    $   8,809
                                =======        =====    =======      =======

Weighted average number of
  common shares outstanding      11,986       11,960     11,970       11,980
                                 ======       ======     ======       ======

                                              
Earnings per common share     $    0.23      $  0.28  $    0.58     $   0.74
                                   ====         ====       ====         ====
                                                                           
Cash dividends per common
  share                       $    0.05      $  0.05  $    0.10     $   0.09
                                   ====         ====       ====         ====


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


                                Page 4 of 13


                          STEEL TECHNOLOGIES INC.
                Condensed Consolidated Statements of Cash Flows
                          (Amounts in thousands)
                                                                               
<TABLE>
<CAPTION>
                                                        Nine months ended
                                                                        
                                                              June 30,  
                         
                                                     1997                1996
------------------------------------------------------------------------------
<S>                                                 <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:


   Net Income                                    $   6,964          $    8,809
   Adjustments to reconcile net income to net cash
     provided in operating activities:

       Depreciation and amortization                 7,628               7,018
       Deferred income taxes                         1,148               1,275
       Equity in net income of unconsolidated      
         corporate joint venture                    (1,080)             (1,207)
       Loss (gain) on sale of assets                     4                (475)
       Increase (decrease) in cash resulting from
                changes in:
            Trade accounts receivable               (5,340)             (9,654)
            Inventories                            (10,376)            (12,027)
            Accounts payable                         2,706               7,455
            Accrued liabilities and income taxes       480               2,678
            Other                                     (767)              1,278
                                                   -------             -------
   Net cash provided by operating activities         1,367               5,150
                                                   -------             -------


CASH FLOWS FROM INVESTING ACTIVITIES:

   Purchases of property, plant and equipment       (6,321)             (5,033)
   Acquisition, net of cash acquired               (10,860)                -
   Investment in unconsolidated corporate
     joint venture                                  (5,000)                - 
   Proceeds from sale of assets                          7                 737
                                                   -------              ------
Net cash used in investing activities              (22,174)             (4,296)
                                                   -------              ------
                                                                              
CASH FLOWS FROM FINANCING ACTIVITIES:
                                                                              
   Proceeds from long-term debt                     26,514               3,214
   Principal payments on long-term debt               (316)               (316)
   Repurchase of common stock                           -               (1,570)
   Cash dividends on common stock                   (1,197)             (1,078)
   Net issuance of common stock under incentive
      stock option plans                               159                  18
                                                    ------              ------
Net cash provided by financing activities           25,160                 268
                                                    ------              ------
Effect of exchange rate changes on cash                 (9)                (51)
                                                    ------              ------


Net increase in cash and cash equivalents            4,344               1,071
Cash and cash equivalents, beginning of year         4,218               2,698
                                                    ------              ------
Cash and cash equivalents, end of period        $    8,562          $    3,769
                                                    ======              ======
Supplemental Cash Flow Disclosures:
Cash payments for interest                      $    3,527          $    2,912
                                                    ======              ======
Cash payments for income taxes                  $    3,063          $    2,228
                                                    ======              ======



Schedule of noncash investing and financing activities:


Fair value of assets acquired, net of
    $8 cash acquired                    $  19,600

Liabilities assumed                         8,740
                                           ------
Net cash paid                           $  10,860
                                           ======
</TABLE>

The accompanying notes are an integral part of the condensed
consolidated financial statements.
                                PAGE 5 of 13

                        STEEL TECHNOLOGIES INC.

                NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                (Unaudited)


1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated balance sheet as of June 30, 1997 and the 
consolidated statements of income for the three and nine-month periods 
ended June 30, 1997 and 1996, and the condensed consolidated statements 
of cash flows for the nine-month periods then ended 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 June 30, 1997 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, 1996.  
The results of operations for the nine months ended June 30, 1997 are 
not necessarily indicative of the operating results for the full year.

2.  INVENTORIES
                                           June 30,            September 30,
                                             1997                  1996
                                         (Unaudited)             (Audited)     
                                                 (Amounts in thousands) 
 --------------------------------------------------------------------------
Inventories consist of:
     Raw Materials                         $ 63,356                $ 49,617    
     Finished goods and
         work in process                     12,963                   9,757
                                             ------                  ------
                                           $ 76,319                $ 59,374 
                                             ======                  ======
3.  RETAINED EARNINGS
                                          Nine months ended
                                            June 30, 1997         
                                       (Amounts in thousands)
------------------------------------------------------------
Retained Earnings consists of:
    Balance, beginning of year                 $ 81,161

       Net income                                 6,964
       Cash dividends on common stock            (1,197)
                                                 ------
   Balance, end of period                      $ 86,928
                                                 ======

                             Page 6 of 13

4.  FOREIGN CURRENCY TRANSLATION

In accordance with Statement of Financial Accounting Standard No. 52, 
"Foreign Currency Translation", the assets and liabilities denominated 
in foreign currency have  previously been translated into U.S. dollars 
at the current rate of exchange existing at period end and revenues and 
expenses were translated at the average monthly exchange rates.  The 
cumulative inflation rate in Mexico over the three year period ended 
December 31, 1996 was approximately 100%, resulting in the Mexican 
economy being considered hyper-inflationary.  The impact to the 
Company's consolidated financial statements from accounting for the 
Company's investment in a hyper-inflationary economy is not expected to 
be material.


5.  EARNINGS PER COMMON SHARE

Earnings per common share are based on the weighted average number of 
common shares outstanding during each period.  Common stock options are 
not included in earnings per share computations since their effect is 
not significant.


6.  ACQUISITION 

On April 1, 1997, the Company completed the purchase of 100% of the 
common stock of Atlantic Coil Processing, Inc. (ACP) for approximately 
$19.6 million in cash, notes payable and assumption of other 
liabilities.  The Company financed the transaction with a combination of 
bank borrowings, issuance of a note payable to the former ACP 
shareholders and the assumption of ACP trade payables and other 
liabilities.  The transaction was accounted for by the purchase method 
of accounting.  The results of the operations for ACP are included in 
the consolidated financial statements of the Company from the date of 
the acquisition. 

                               Page 7 of 13

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 or 
other business interruptions affecting automotive manufacturers; 
competitive factors such as pricing and availability of steel; reliance 
on key customers; 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

The Company posted record third quarter 1997 sales of $101,082,000, the 
highest for any quarter in the Company's history, an increase of 32% 
from the $76,623,000 a year ago.  Sales for the nine months ended June 
30, 1997 increased 18% to $258,912,000 from $218,960,000 in 1996.  The 
increase in revenues in the third quarter and nine months of 1997 
benefited from the inclusion of $16.3 million of revenues from ACP.  
Revenues from the other steel processing operations increased 
approximately 11% in the quarter and nine months ended June 30, 1997 
from a year ago.  The Company continues to focus significant resources 
on the automotive industry and to generate a major portion of business 
from selling to industrial customers manufacturing component parts for 
use in the automotive industry.  Demand in the automotive and other 
steel consuming markets during the quarter and nine months ended June 
30, 1997 was comparable to the levels of the prior year.  The Company 
continues to increase its market share and to be successful in 
developing a substantial amount of new business with both existing and 
new customers.  As a result of the ACP acquisition and market share 
gains, tons shipped in the third quarter and nine months of 1997 
increased 29% and 22% from the comparable prior year periods.  Average 
selling prices for the third quarter of 1997 increased 2% from the prior 
year, but year-to-date selling prices remained 3% lower than the 
comparable prior year period.  Demand in the automotive and other steel 
consuming markets remains at historic high levels.  The capital 
investments completed in recent years have added new capacity and 
increased the products and services offered by the Company.  The 
additional product offerings are allowing the Company to pursue 
significant new business opportunities and to further enhance its market 
share.  The acquisition of ACP adds new capacity, geographic diversity 
and cut-to-length capabilities, which will further enhance the Company's 
position in the marketplace.


                           Page 8 of 13


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

Results of Operations (Cont.)

Cost of goods sold as a percentage of sales was 89.3% and 89.0% in the 
third quarter and nine months of fiscal 1997 compared to 85.9% and 86.2% 
in the same periods of 1996.  As a result, the gross profit margin 
decreased to 10.7% and 11.0% in 1997 from 14.1% and 13.8% a year 
earlier.  The gross profit margin in the third quarter and nine months 
ended June 30, 1997 declined as a result of increases in the purchase 
price of raw materials from the primary steel mills.  These purchase 
price increases were not fully offset with selling price increases to 
our customers.  A number of steel mills experienced temporary production 
problems and work stoppages which have negatively impacted the available 
supply of raw materials.  Additionally, the Company expects the raw 
material supply, especially in hot rolled steel, to improve as new 
steelmaking capacity and increased imports enter the market.  This 
additional raw material supply is expected to alleviate the upward 
pressure on the price of flat rolled steel.  However, should raw 
material price increases persist, margins will be negatively impacted 
until corresponding selling price increases are passed along to 
customers.  The gross margin is expected to be positively impacted by 
production cost efficiencies associated with the anticipated higher 
sales volumes.  Additionally, the Company expects to increase the amount 
of higher margin toll processing revenue generated by the Company's 
pickling facility throughout fiscal 1997.

The Company continues to actively manage the level at which selling, 
general and administrative costs are added to its cost structure.  Sales 
increased approximately 32% and 18% in the third quarter and nine months 
ended June 30, 1997, while selling, general and administrative costs 
increased approximately 12% and 4% from the comparable 1996 periods.  As 
a result, selling, general and administrative expenses as a percentage 
of sales decreased to 5.3% and 5.7% for the quarter and nine months 
ended June 30, 1997 from 6.3% and 6.4% in the same periods a year ago.  

The Company's equity in net income of its unconsolidated corporate joint 
venture decreased to $377,000 and $1,080,000 for the quarter and nine 
months ended June 30, 1997 from $475,000 and $1,207,000 a year ago.  
These decreases are principally the result of lower steel margins which 
offset the higher sales levels achieved by the 50% owned corporate joint 
venture, Mi-Tech Steel, Inc. 

Interest expense increased to $1,585,000 and $4,085,000 for the quarter 
and nine months ended June 30, 1997 from $1,297,000 and $3,759,000 in 
1996. These increases are the result of higher average borrowings used 
to finance the acquistion of ACP, capital additions and working capital 
needs of the Company in 1997.   

The Company's effective income tax rate was approximately 35% and 36% in 
the third quarter and nine months ended June 30, 1997 compared to 36% in 
the prior year periods.  


                             Page 9 of 13


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

Liquidity and Capital Resources

At June 30, 1997, the Company had $67,240,000 of working capital, 
maintained a current ratio of 2.0:1 and had long-term debt at 41% of 
total capitalization.  The Company manages the levels of accounts 
receivable, inventories and other working capital items in relation to 
the trends in sales and the overall market.  The Company expects the 
sales trends to remain at a consistent level for the balance of the 1997 
fiscal year based on the current backlogs and order entry activity.  
During the first nine months of fiscal 1997 accounts receivable, 
inventories and other working capital needs have increased to support 
the higher sales levels.  These working capital items were financed with 
borrowings from the Company's bank line of credit.  The combination of 
the expected sales levels and increased availability of raw material 
will increase the inventory turnover, reducing the number of days 
carried in inventory. 

The Company's capital expenditures for the first nine months of 1997 
totaled $6,321,000.  The Company has expanded its production and 
processing capacity and added new processing capabilities over the last 
few years and expects capital additions and investments in corporate 
joint ventures to approximate $15 million for 1997.  These expenditures 
have been financed primarily with proceeds from long-term debt.

On April 1, 1997, the Company completed the purchase of 100% of the 
common stock of Atlantic Coil Processing, Inc. (ACP) for approximately 
$19.6 million in cash, notes and assumption of liabilities.  The Company 
financed the transaction by borrowing approximately $10.9 million on the 
line of credit, issuing $3.6 million of a note payable to the former ACP 
shareholders and the assumption of $5.1 million in additional 
liabilities. 

Pursuant to a joint venture agreement, Steel Technologies has guaranteed 
$6,250,000 of the bank financing required for the working capital 
purposes of Mi-Tech Steel, Inc.  Mi-Tech Steel is anticipating 
significant capital additions in 1997 to construct a pickling, slitting 
and cut-to-length facility in Decatur, Alabama.  In order to finance 
this project, Steel Technologies in the June quarter contributed $5 
million of additional equity to the joint venture.  Additional equity 
contributions to the joint venture are not expected for the foreseeable 
future, however, additional debt guarantees may be required in the 
future.  


                             Page 10 of 13

                                          

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

Liquidity and Capital Resources (Cont.)

The Company believes that the $7 million available under its unsecured 
bank line of credit provides sufficient liquidity and available capital 
resources to meet its existing needs over the next twelve months.  At 
this time the Company has no known material obligations, commitments or 
demands which must be met beyond the next twelve months other than the 
ten year notes and the line of credit.  The ten year notes do not 
require any principal payments until fiscal 1999 and the line of credit 
is expected to be renewed at the end of the term.  However, the Company 
is presently evaluating its needs for additional funds to finance 
possible acquisitions, the opening of new plants or significant 
improvements in its 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 June 30, 1997, the Company had $97,468,000 in current and long-term 
debt outstanding.  Under its various debt agreements, the Company has 
agreed to maintain specified levels of working capital and net worth, 
maintain certain ratios and limit the addition of substantial debt.  The 
Company is in compliance with all of its loan covenants, and none of 
these covenants would restrict the Company from completing currently 
planned capital expenditures.

The Company maintains an equity investment of approximately $6 million 
in its 80% owned Mexican subsidiary.  In accordance with Statement of 
Financial Accounting Standard No. 52, "Foreign Currency Translation", 
the assets and liabilities of the Mexican subsidiary have  previously 
been translated into U.S. dollars at the current rate of exchange 
existing at period end and revenues and expenses were translated at the 
average monthly exchange rates.  Future currency fluctuations will be 
reflected as a component of stockholders' equity.  The cumulative 
inflation rate in Mexico over the three year period ended December 31, 
1996 was approximately 100%, resulting in the Mexican economy being 
considered hyper-inflationary.  The impact to the Company's consolidated 
financial statements from accounting for the Company's investment in a 
hyper-inflationary economy is not expected to be material.

The Company maintains an investment, principally in preferred stock of 
Processing Technology, Inc., a corporate joint venture.  The Company 
periodically evaluates the possible conversion of its preferred stock 
investment into common stock of Processing Technology, Inc.  The 
Company's decision to convert its investment to common stock will be 
based upon the joint venture attaining certain financial criteria 
established by Steel Technologies.  Upon conversion, the Company would 
be obligated to guarantee a proportionate share, currently approximating 
$9,500,000, of the joint venture's loan and lease commitments.  The 
conversion is not expected to occur in the near term.


                          Page 11 of 13


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

Liquidity and Capital Resources (Cont.)

The Company believes its 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 in the 
future.


PART II. OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

(a)  The following exhibit is filed as a part of this report:

27         --	Financial Data Schedule

(b)  No reports on Form 8-K were filed during the quarter ended June 30, 
1997.



                        Page 12 of 13



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/KENNETH R. BATES
                                       ________________

                                       Kenneth R. Bates
                                       Vice President Finance;
                                       Chief Financial Officer
                                      (Principal Financial and
                                       Chief Accounting Officer)




Dated August 11, 1997



                                Page 13 of 13