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, 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 10,630,625 shares outstanding of the Registrant's  common stock as of
July 31, 2000.


                                       1
<PAGE>





                             STEEL TECHNOLOGIES INC.

                                      INDEX



                                                                     Page Number
PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Consolidated Balance Sheets June 30, 2000
        (Unaudited) and September 30, 1999 (Audited) ......................    3

        Condensed Consolidated Statements of Income and Comprehensive
        Income Three months and Nine months ended June 30, 2000 and 1999
        (Unaudited) ........................................................   4

        Condensed Consolidated Statements of Cash Flows
        Nine months ended June 30, 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 ..............................................................   13

PART II.    OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K ..................................   14


                                       2
<PAGE>


                     Part I. - FINANCIAL INFORMATION
                      Item 1. Financial Statements

                         STEEL TECHNOLOGIES INC.
                  Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                       June 30      September 30
                                                         2000           1999
                                                     -----------    ------------
(In thousands)                                       (Unaudited)      (Audited)
--------------------------------------------------------------------------------
<S>                                                   <C>             <C>
ASSETS
Current assets:
   Cash and cash equivalents ...................      $   1,427       $  12,578
   Trade accounts receivable, net ..............         70,616          54,389
   Inventories .................................         98,722          80,625
   Deferred income taxes .......................          2,851           2,426
   Prepaid expenses and other assets ...........          1,089             474
                                                      ---------       ---------
      Total current assets .....................        174,705         150,492

Property, plant and equipment, net .............        117,944         107,953
Investments in corporate joint ventures ........         20,735          19,858
Goodwill, net of amortization ..................         19,329           9,664
Other assets ...................................          2,004           1,138
                                                      ---------       ---------
                                                      $ 334,717       $ 289,105
                                                      =========       =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable ............................      $  52,275       $  44,649
   Accrued liabilities .........................          7,300           9,139
   Income taxes payable ........................          1,383             595
   Long-term debt due within one year ..........          6,248           6,691
                                                      ---------       ---------
      Total current liabilities ................         67,206          61,074

Long-term debt .................................        125,362          90,209
Deferred income taxes ..........................         14,881          12,904
Other long term liabilities ....................            192             479
                                                      ---------       ---------
      Total liabilities ........................        207,641         164,666
                                                      ---------       ---------
Commitments and contingencies ..................           --              --
 Shareholders' equity:
   Preferred stock .............................           --              --
   Common stock ................................         17,273          17,140
   Treasury stock ..............................        (12,506)         (7,123)
   Additional paid-in capital ..................          4,909           4,909
   Retained earnings ...........................        119,411         111,311
   Accumulated other comprehensive loss ........         (2,011)         (1,798)
                                                      ---------       ---------
     Total shareholders' equity ................        127,076         124,439
                                                      ---------       ---------
                                                      $ 334,717       $ 289,105
                                                      =========       =========
</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    Nine Months Ended
(Unaudited)                                  June 30               June 30
--------------------------------------------------------------------------------
                                        2000       1999       2000       1999
                                      ------------------------------------------
<S>                                   <C>        <C>        <C>        <C>
Sales ................................ $121,936   $109,248   $347,736   $314,342
Cost of goods sold ...................  109,349     93,136    307,308    270,752
                                       --------   --------   --------   --------
      Gross profit ...................   12,587     16,112     40,428     43,590

Selling, general and
   administrative expenses ...........    7,269      6,850     21,364     19,630
Equity in net income of unconsolidated
  corporate joint venture ............      268        355        877        627
                                       --------   --------   --------   --------
   Operating income ..................    5,586      9,617     19,941     24,587

Interest expense .....................    1,847      2,412      5,130      5,940
                                       --------   --------   --------   --------
   Income before income taxes ........    3,739      7,205     14,811     18,647

Provision for income taxes ...........    1,187      2,723      5,314      7,281
                                       --------   --------   --------   --------
    Net income ....................... $  2,552   $  4,482   $  9,497   $ 11,366
                                       --------   --------   --------   --------
Diluted weighted average number of
   common shares outstanding .........   10,739     11,157     10,952     11,281
                                       ========   ========   ========   ========

Diluted earnings per common share .... $   0.24   $   0.40   $   0.87   $   1.01
                                       ========   ========   ========   ========

Basic weighted average number of
   common shares outstanding .........   10,730     11,128     10,903     11,262
                                       ========   ========   ========   ========

Basic earnings per common share ...... $   0.24   $   0.40   $   0.87   $   1.01
                                       ========   ========   ========   ========

Cash dividends per common share ...... $   0.06   $   0.06   $   0.12   $   0.11
                                       ========   ========   ========   ========

</TABLE>


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

(In thousands)                        Three Months Ended     Nine Months Ended
(Unaudited)                                 June 30                June 30
--------------------------------------------------------------------------------
                                        2000       1999       2000        1999
                                   ---------------------------------------------
<S>                                   <C>        <C>        <C>         <C>
Net income ........................   $  2,552   $  4,482   $  9,497   $ 11,366
    Foreign currency translation
        adjustment ................       (194)        26       (213)      (735)
                                      --------   --------   --------   --------
Comprehensive income ..............   $  2,358   $  4,508   $  9,284   $ 10,631
                                      ========   ========   ========   ========
</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)                                               Nine months ended
(Unaudited)                                                       June 30
--------------------------------------------------------------------------------
                                                             2000       1999
                                                           ---------------------
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income .........................................   $  9,497    $ 11,366
   Adjustments to reconcile net income to net cash
    (used in) provided by operating activities:
       Depreciation ...................................      9,857       9,271
       Amortization ...................................        442         285
       Deferred income taxes ..........................      1,366        (270)
       Equity in net income of unconsolidated corporate
       joint venture ..................................       (877)       (627)
       Loss on sale of assets .........................         13           8
       Increase (decrease) in cash resulting from
         changes in:
             Trade accounts receivable ................    (14,524)    (11,448)
             Inventories ..............................    (16,363)      5,276
             Prepaid expenses and other assets .......        (523)     (1,003)
             Accounts payable .........................      5,621        (287)
             Accrued liabilities and income taxes .....     (2,180)      5,190
                                                          --------    --------
Net cash (used in) provided by operating activities ...     (7,671)     17,761
                                                          --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property, plant and equipment .........    (16,442)    (13,171)
   Proceeds from sale of property, plant and equipment         328       1,365
   Acquisition, net of cash acquired ..................    (12,122)        --
   Investment in unconsolidated joint venture .........        --         (600)
                                                            ------    --------
Net cash used in investing activities .................    (28,236)    (12,406)
                                                            ------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from long-term debt .......................     39,000       9,000
   Principal payments on long-term debt ...............     (6,872)     (8,435)
   Cash dividends on common stock .....................     (1,311)     (1,240)
   Repurchase of common stock .........................     (5,383)     (3,331)
   Net issuance of common stock .......................         46         --
   Net issuance of common stock under
     stock option plans ...............................         --         105
   Other ..............................................       (700)        --
                                                          --------    --------
Net cash provided by financing activities .............     24,780      (3,901)
                                                          --------    --------
Effect of exchange rate changes on cash ...............        (24)        (63)
                                                          --------    --------
Net decrease in cash and cash equivalents .............    (11,151)      1,391
Cash and cash equivalents, beginning of year ..........     12,578       4,778
                                                          --------    --------
Cash and cash equivalents, end of period ..............   $  1,427    $  6,169
                                                          ========    ========
Supplemental Cash Flow Disclosures:
Cash payment for interest .............................   $  5,618    $  5,554
                                                          ========    ========
Cash payment for income taxes .........................   $  5,741    $  7,966
                                                          ========    ========
</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 June 30, 2000 and the condensed
consolidated  statements  of income and  comprehensive  income for the three and
nine months ended June 30, 2000 and 1999, and condensed  consolidated cash flows
for the nine  months  ended  June 30,  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 June 30, 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, 1999.  The results of operations  for the nine months ended
March 31, 2000 are not necessarily  indicative of the operating  results for the
full year.

2.  INVENTORIES:

<TABLE>
<CAPTION>
Inventory consists of:
                                                      June 30      September 30
                                                        2000           1999
                                                     ----------    ------------
(In thousands)                                        Unaudited       Audited
------------------------------------------------------------------------------
<S>                                                 <C>               <C>
Raw materials ....................................   $   78,821      $   64,139
Finished goods and work in process ...............       19,901          16,486
                                                     ----------      ----------
                                                     $   98,722      $   80,625
                                                     ==========      ==========
</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    Nine Months Ended
(In thousands, except per share results)      June 30              June 30
--------------------------------------------------------------------------------
                                           2000      1999      2000      1999
                                      ------------------------------------------
<S>                                      <C>       <C>       <C>       <C>
Net income ...........................   $ 2,552   $ 4,482   $ 9,497   $11,366
                                         -------   -------   -------   -------
Shares (denominator) used for
  diluted per share computations:
    Weighted average shares of common
       stock outstanding .............    10,730    11,128    10,903    11,262
    Plus: dilutive effect of stock
       options .......................         9        29        49        19
                                         -------   -------   -------   -------
       Diluted weighted average shares    10,739    11,157    10,952    11,281
                                         -------   -------   -------   -------
Shares (denominator) used for
  basic per share computations:
    Weighted average shares of common
       stock outstanding .............    10,730    11,128    10,903    11,262
                                         -------   -------   -------   -------

Net income per share data:
    Diluted ..........................   $  0.24   $  0.40   $  0.87   $  1.01
                                         =======   =======   =======   =======

    Basic ............................   $  0.24   $  0.40   $  0.87   $  1.01
                                         =======   =======   =======   =======
</TABLE>

Options  to  purchase  587,500  and  518,000  shares at June 30,  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. ACQUISITION:

On January 12, 2000 the Company completed the purchase of Custom Steel, Inc. and
Custom Steel  Processing  Corp.,  collectively  referred to as Custom Steel. The
purchase price included  $13,350,000 in cash and the assumption of $5,800,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years.  The Company financed the acquisition with existing
credit facilities. The Custom Steel acquisition has been accounted for under the
purchase  method of  accounting.  Accordingly,  the results of the operations of
Custom Steel have been included in the  consolidated  financial  statements from
the date of acquisition.

                                      7
<PAGE>

5. SHAREHOLDERS' EQUITY

During 2000,  the Company  amended its  restated  articles of  incorporation  to
increase the number of authorized common shares from 20,000,000 to 50,000,000.

On April  28,  2000,  the  Board of  Directors  authorized  the  repurchase,  at
management's  discretion,  of up to 2,500,000  shares of its common stock.  This
recent  approval  increased  the number of shares the  Company  may  purchase to
2,500,000 shares from 1,500,000 shares, an increase of 1,000,000 shares.

6. IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:

In December 1999, the staff of the  Securities  and Exchange  Commission  issued
Staff Accounting Bulletin No. 101 (SAB 101),  "Revenue  Recognition in Financial
Statements".  SAB 101  summarizes  some of the  staff's  interpretations  of the
application of generally accepted accounting  principles to revenue recognition.
The Company is expected to apply the accounting and disclosure requirements that
are  described in SAB 101 no later than July 1, 2001.  Management of the Company
is currently analyzing the impact of SAB 101 but anticipates the adoption of SAB
101 will not have a material  impact on the  Company's  results of operations or
its financial position.


                                       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 third quarter sales of  $121,936,000  for the
fiscal  quarter  ended  June  30,  2000,  an  increase  of  12%  from  sales  of
$109,248,000  for the  third  quarter  ended  June 30,  1999.  Tons  shipped  of
Company-owned  steel  products  in the third  quarter of fiscal  2000  increased
approximately  9% compared to the third quarter of fiscal 1999 while the average
selling price of Company-owned  steel products for the third quarter fiscal 2000
increased  approximately 3% from 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 $6,400,000 of revenues for
the third quarter of fiscal 2000.  Sales of existing  Steel  Technologies  steel
processing  operations  increased by approximately  $6,288,000 or 6% from a year
ago.

Sales for the nine  months  ended  June 30,  2000  increased  by 11% to a record
$347,736,000  compared to $314,342,000  for the nine months ended June 30, 1999.
Sales of existing  Steel  Technologies  steel  processing  operations  excluding
Custom Steel  increased  by  approximately  $22,128,000  or 7% from the previous
year's first nine months.

Tons shipped in the first nine months of fiscal 2000 increased  approximately 8%
compared  to the first nine months of fiscal  1999.  Average  selling  prices of
steel for the first nine months of fiscal  2000  increased  approximately  2% as
compared  to the  previous  year.  The  sales  outlook  is solid  based on order
activity and backlogs.

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 and
to develop a  substantial  amount of new  business  with both  existing  and new
customers.

                                       9
<PAGE>

The gross profit margin was 10.3% and 11.6% in the third quarter and nine months
of fiscal 2000,  respectively  compared to 14.7% and 13.9% in the third  quarter
and nine months of fiscal 1999,  respectively.  The  decreases are primarily the
result of increases in raw material  prices as compared to the first nine months
of last year.  Strong demand for steel  products and the efforts of the domestic
steel  industry to curtail  alleged  unfair trade  practices of certain  foreign
steel  importers have  significantly  reduced the amount of imported flat rolled
products flowing into the United States.  As a result,  the supply of steel from
foreign producers has declined significantly in fiscal 2000, and resulted in the
domestic  producers  increasing raw material prices. The Company does not expect
further  increases in raw material  costs through the balance of fiscal 2000. In
general,   production  cost   efficiencies  and  product  mix  improvements  may
positively  impact gross margins and somewhat  offset rising raw material costs.
Additionally,  an increase in the use of the  Company's  pickling  facility  and
blanking  lines are  expected  to  increase  the  amount of higher  margin  toll
processing revenue for the remainder of fiscal 2000. Toll processing,  primarily
of  customer-owned  steel,  generates  higher gross margin  percentages than the
traditional processing of Company-owned steel.

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% and 9%, respectively
from the  comparable  third quarter and first nine months of fiscal 1999 period.
Selling,  general and administrative expenses as a percentage of sales were 6.0%
for the third  quarter of fiscal 2000 as compared to 6.3% for the third  quarter
of fiscal 1999. Selling,  general and administrative expenses as a percentage of
sales  were  6.1%  for the nine  months  ended  June  30,  2000 and 6.2% for the
comparable period last year. 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  recent  capacity
expansions in Ohio and South Carolina and sales growth in Mexico.

The  Company's  share  of the  income  of  Mi-Tech  Steel,  Inc.,  (Mi-Tech)  an
unconsolidated corporate joint venture, was $268,000 and $877,000,  respectively
for the third  quarter and nine months of fiscal 2000  compared to $355,000  and
$627,000,  respectively  for the third  quarter and nine  months  ended June 30,
1999.  Improvements  in demand for  Mi-Tech  products  and  services  positively
impacted  Mi-Tech's  profitability  for the first nine  months of fiscal 2000 as
compared to the first nine months of fiscal 1999. The Company expects a positive
income contribution from Mi-Tech during the fourth quarter of fiscal 2000.

                                       10
<PAGE>

Net  interest  expense  for the  third  quarter  of fiscal  2000 was  $1,847,000
compared  to  $2,412,000  for the third  quarter of fiscal  1999.  Net  interest
expense  for the first nine  months of fiscal  2000 was  $5,130,000  compared to
$5,940,000 for first nine months of fiscal 1999. Although average borrowings and
the  interest  rate for  borrowings  increased  during the first nine  months of
fiscal 2000 compared to fiscal 1999, net interest expense  decreased  because of
the  amortization  of a gain  generated  by  terminating  an interest  rate swap
agreement in the third  quarter of fiscal  1999,  foreign  currency  transaction
gains  generated  from  operations  in  Mexico  and  interest  capitalized  from
construction in process in Matamoros, Mexico.

The  Company's  effective  income  tax rate was  approximately  31.7% and 35.9%,
respectively  for the third  quarter and nine months of fiscal 2000  compared to
37.8% and 39.0% for the  comparable  periods of fiscal  1999.  The  decrease  is
attributable to a higher  percentage of overall  earnings from the Mi-Tech joint
venture, which are not fully taxable to the Company, a reduction in state income
taxes realized from  restructuring  the Company in fiscal 2000 and lower taxable
earnings for the Company's Mexican subsidiary.

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

As of June 30, 2000,  Steel  Technologies  had  $107,499,000 of working capital,
maintained  a  current  ratio  of  2.6:1  and had  total  debt  at 51% of  total
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.  For the first  nine  months of fiscal
2000,  increased  inventory levels and higher accounts receivable to support the
growth  in  sales,  partially  offset  with  an  increase  in  accounts  payable
contributed  to the use of $7,671,000 of cash from  operations.  Cash flows from
operations and available  borrowing  capabilities are expected to meet the needs
of the Company throughout fiscal 2000.

Capital  expenditures  excluding  acquisition for the nine months of fiscal 2000
totaled $16,442,000. The major expenditures were for the construction of the new
Matamoros, Mexico facility, the completion of the Ohio plant expansion and other
capacity expansion projects.  Steel Technologies  continues to expand production
capacity and processing facilities to serve the growing needs of customers.  For
fiscal 2000, the capital  additions to all facilities,  including the completion
of the  construction  of the  Matamoros,  Mexico  facility,  expansion  of Steel
Technologies  processing  capabilities and the recently completed acquisition of
Custom Steel are expected to approximate $30,000,000.

                                       11
<PAGE>

On January 12, 2000 the Company  completed  the  purchase of Custom  Steel.  The
purchase price included  $13,350,000 in cash and the assumption of $5,800,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years.  The Company financed the acquisition with existing
credit facilities. The Custom Steel acquisition has been accounted for under the
purchase  method of  accounting.  Accordingly,  the results of the operations of
Custom Steel have been included in the  consolidated  financial  statements from
the date of acquisition.

Steel Technologies  maintains an equity investment of approximately  $17,657,000
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.

The Company maintains an investment of approximately $1,000,000,  principally in
the preferred  stock of Processing  Technology,  Inc., a corporate joint venture
accounted for using the cost method.

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.

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 nine months of fiscal 2000, the
Company borrowed  $39,000,000 for the purchase of Custom Steel,  construction of
the Matamoros,  Mexico facility and for working capital needs. At June 30, 2000,
there was $96,000,000 outstanding on the credit facility.

In April 2000, the Company entered into an additional $15,000,000 line of credit
agreement  expiring on December 31, 2000, with various  variable  options on the
interest rate,  none of which are greater than the bank's prime.  As of June 30,
2000, there were no borrowings outstanding on this credit facility.

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<PAGE>

The lines of credit  are  expected  to be  sufficient  to  finance  the  capital
expenditure  plans as well as the working capital needs for fiscal 2000. 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  notes and the  unsecured  bank lines of credit.  The  ten-year  notes
require  principal  payments  through  March 2005 and the  $100,000,000  line of
credit is expected to be renewed at the end of the term. The Company  expects to
retire the additional  $15,000,000 line of credit upon maturity.  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 June  30,  2000,  Steel  Technologies  had  $131,610,000  of  long-term  debt
outstanding.  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.  The Company is in compliance  with all
loan  covenants,  and none of these  covenants  would restrict the completion of
currently planned capital expenditures.

On April 28, 2000,  the Board of  Directors  approved an  additional  plan under
which the Company may  repurchase  2,500,000  shares of its common  stock.  This
recent  approval  increased  the number of shares the  Company  may  purchase to
2,500,000 shares from 1,500,000 shares, an increase of 1,000,000 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  1,381,000  shares of common stock,  including  581,000 during the
first nine months of fiscal 2000.

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.

       Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material  change  during the first nine months  ended June 30,
2000 from the  disclosures  about market risk provided in the  Company's  Annual
Report on Form 10-K for the year ended September 30, 1999.

                                       13
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                          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:

EXHIBIT 27  -- FINANCIAL DATA SCHEDULE

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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 August 11, 2000