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, 1999

                                       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 10,930,317 shares outstanding of the Registrant's  common stock as of
January 31, 2000.



                                       1
<PAGE>





                             STEEL TECHNOLOGIES INC.

                                      INDEX



                                                                     Page Number
PART I.     FINANCIAL INFORMATION

Item 1. Financial Statements

        Condensed Consolidated Balance Sheets December 31, 1999
        (Unaudited) and September 30, 1999 (Audited) ......................    3

        Condensed Consolidated Statements of Income and Comprehensive
        Income Three months ended December 31, 1999 and 1998 (Unaudited) ..    4

        Condensed Consolidated Statements of Cash Flows
        Three months ended December 31, 1999 and 1998 (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 ............................................. 9-12

Item 3. Quantitative and Qualitative Disclosures About Market
        Risk ..............................................................   12

PART II.    OTHER INFORMATION

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


                                       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
--------------------------------------------------------------------------------
                                                         1999            1999
                                                      (Unaudited)     (Audited)
                                                 -------------------------------
<S>                                                   <C>             <C>
ASSETS
Current assets:
   Cash and cash equivalents ...................      $  13,952       $  12,578
   Trade accounts receivable, net ..............         58,891          54,389
   Inventories .................................         83,750          80,625
   Deferred income taxes .......................          2,566           2,426
   Prepaid expenses and other assets ...........            450             474
                                                      ---------       ---------
      Total current assets .....................        159,609         150,492

Property, plant and equipment, net .............        110,456         107,953
Investments in corporate joint ventures ........         20,262          19,858
Goodwill, net of amortization ..................          9,570           9,664
Other assets ...................................          1,115           1,138
                                                      ---------       ---------
                                                      $ 301,012       $ 289,105
                                                      =========       =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable ............................      $  44,208       $  44,649
   Accrued liabilities .........................          7,409           9,139
   Income taxes payable ........................          2,421             595
   Long-term debt due within one year ..........          6,691           6,691
                                                      ---------       ---------
      Total current liabilities ................         60,729          61,074

Long-term debt .................................        102,041          90,209
Deferred income taxes ..........................         13,181          12,904
Other long term liabilities ....................            383             479
                                                      ---------       ---------
      Total liabilities ........................        176,334         164,666
                                                      ---------       ---------
Commitments and contingencies ..................           --              --
 Shareholders' equity:
   Preferred stock .............................           --              --
   Common stock ................................         17,156          17,140
   Treasury stock ..............................         (9,911)         (7,123)
   Additional paid-in capital ..................          4,908           4,909
   Retained earnings ...........................        114,297         111,311
   Accumulated other comprehensive loss ........         (1,772)         (1,798)
                                                      ---------       ---------
     Total shareholders' equity ................        124,678         124,439
                                                      ---------       ---------
                                                      $ 301,012       $ 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
(Unaudited)                                                      December 31
--------------------------------------------------------------------------------
                                                             1999          1998
                                                           ---------------------

<S>                                                        <C>          <C>
Sales ................................................     $104,890     $ 98,203
Cost of goods sold ...................................       91,669       85,249
                                                           --------     --------
     Gross profit ....................................       13,221       12,954
Selling, general and administrative expenses .........        6,568        6,359
Equity in net income of unconsolidated
  corporate joint venture ............................          404          116
                                                           --------     --------
  Operating income ...................................        7,057        6,711

Interest expense, net ................................        1,344        1,705
                                                           --------     --------
   Income before income taxes ........................        5,713        5,006
Provision for income taxes ...........................        2,062        2,015
                                                           --------     --------
   Net income ........................................     $  3,651     $  2,991
                                                           ========     ========
Weighted average number of common
   shares outstanding-diluted ........................       11,186       11,439
                                                           ========     ========
Diluted earnings per common share ....................     $   0.33     $   0.26
                                                           ========     ========
Weighted average number of common
   shares outstanding-basic ..........................       11,095       11,427
                                                           ========     ========
Basic earnings per common share ......................     $   0.33     $   0.26
                                                           ========     ========
Cash dividends per common share ......................     $   0.06     $   0.05
                                                           ========     ========
</TABLE>


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

(In thousands)                                              Three Months Ended
(Unaudited)                                                     December 31
--------------------------------------------------------------------------------
                                                             1999          1998
                                                           ---------------------
<S>                                                        <C>          <C>
Net income ...........................................     $ 3,651      $  2,991
   Foreign currency translation adjustment............         (26)          --
                                                           -------      --------
Comprehensive income .................................     $ 3,625      $  2,991
                                                           =======      ========
</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
--------------------------------------------------------------------------------
                                                             1999       1998
                                                           ---------------------
<S>                                                       <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income .........................................   $  3,651    $  2,991
   Adjustments to reconcile net income to net cash
    (used in) provided by operating activities:
       Depreciation ...................................      3,182       3,056
       Amortization ...................................         94          94
       Deferred income taxes ..........................        137         406
       Equity in net income of unconsolidated corporate
       joint venture ..................................       (404)       (116)
       Gain on sale of assets .........................        (19)        (14)
       Increase (decrease) in cash resulting from
         changes in:
             Trade accounts receivable ................     (4,474)     (5,584)
             Inventories ..............................     (3,105)     (3,046)
             Prepaids expenses and other assets .......         48      (1,324)
             Accounts payable .........................       (379)      7,221
             Accrued liabilities and income taxes .....        (56)      2,132
                                                          --------    --------
Net cash (used in) provided by operating activities ...     (1,325)      5,816
                                                          --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property, plant and equipment .........     (5,772)     (3,707)
   Proceeds from sale of property, plant and equipment          55       1,304
   Investment in unconsolidated joint venture .........       (600)
                                                            ------    --------
Net cash used in investing activities .................     (5,717)     (3,003)
                                                            ------    --------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from long-term debt .......................     12,000       7,000
   Principal payments on long-term debt ...............       (168)       (167)
   Cash dividends on common stock .....................       (665)       (573)
   Repurchase of common stock .........................     (2,788)     (2,024)
   Net issuance of common stock .......................         16
   Net issuance of common stock under
     stock option plans ...............................         75
                                                          --------    --------
Net cash provided by financing activities .............      8,395       4,311
                                                          --------    --------
Effect of exchange rate changes on cash ...............         21        (108)
                                                          --------    --------
Net increase in cash and cash equivalents .............      1,374       7,016
Cash and cash equivalents, beginning of year ..........     12,578       4,778
                                                          --------    --------
Cash and cash equivalents, end of period ..............   $ 13,952    $ 11,794
                                                          ========    ========
Supplemental Cash Flow Disclosures:
Cash payment for interest .............................   $  1,719    $  1,759
                                                          ========    ========
Cash payment for income taxes .........................   $    364    $   --
                                                          ========    ========
</TABLE>

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

                                       5
<PAGE>

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

1.  BASIS OF PRESENTATION:

The  condensed  consolidated  balance  sheet  as of  December  31,  1999 and the
condensed consolidated statements of income, comprehensive income and cash flows
for the three months ended  December 31, 1999 and 1998 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, 1999
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 three months ended
December 31, 1999 are not  necessarily  indicative of the operating  results for
the full year.

2.  INVENTORIES:

<TABLE>
<CAPTION>
Inventory consists of:
(In thousands)                                        December 31 September 30
--------------------------------------------------------------------------------
                                                         1999         1999
                                                       Unaudited    Audited
                                                     -------------------------
<S>                                                 <C>               <C>
Raw materials ....................................   $   68,137   $   64,139
Finished goods and work in process ...............       15,613       16,485
                                                     ----------   ----------
                                                     $   83,750   $   80,624
                                                     ==========   ==========
</TABLE>


                                       6
<PAGE>

3.  NET INCOME PER SHARE COMPUTATIONS:

The following is a  reconciliation  of the  denominator of the basic and diluted
per share computations:
<TABLE>
<CAPTION>

                                                            Three Months Ended
(In thousands, except per share results)                        December 31
--------------------------------------------------------------------------------
                                                             1999        1998
                                                          ----------------------
<S>                                                       <C>         <C>
Net income ............................................   $   3,651   $   2,991
                                                          ---------   ---------
Shares (denominator) used for diluted
   per share computations:
    Weighted average shares of common  stock
        outstanding ...................................      11,095      11,427
    Plus: dilutive effect of stock options ............          91          12
                                                          ---------   ---------
           Diluted weighted average shares ............      11,186      11,439
                                                          ---------   ---------
Shares (denominator) used for basic per
   share computations:
   Weighted average shares of common stock
       outstanding ....................................      11,095      11,427
                                                          ---------   ---------
Net income per share data:
    Diluted ...........................................   $    0.33   $    0.26
                                                          =========   =========
    Basic .............................................   $    0.33   $    0.26
                                                          =========   =========
</TABLE>
Options  to  purchase  70,000 and  566,000  shares  for the three  months  ended
December 31, 1999, and 1998,  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 $5,400,000 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 will be accounted for under the
purchase  method of  accounting.  Accordingly,  the result of the  operations of
Custom Steel will be included in the consolidated  financial statements from the
date of acquisition.

                                      7
<PAGE>

5.  IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and Hedging Activities" ("SFAS No. 133"). In general, SFAS No. 133 requires that
all  derivatives  be recognized as either assets or  liabilities  in the balance
sheet at their fair  value,  and sets forth the manner in which gains and losses
thereon are to be recorded.  The  treatment of such gains or losses is dependent
upon the type of exposure,  it any, for which the  derivative is designated as a
hedge.  As amended by  Statement  of  Financial  Accounting  Standards  No. 137,
"Accounting for Derivative  Instruments and Hedging Activities - Deferral of the
effective  date for FASB  Statement No 133," This  standard is effective for the
Company's  financial  statements  beginning October 1, 2001, with early adoption
permitted.  Management of the Company  anticipates that the adoption of SFAS No.
133 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 first quarter sales of  $104,890,000  for the
fiscal  quarter  ended  December  31,  1999,  an  increase  of 7% from  sales of
$98,203,000  for the first  quarter  ended  December 31,  1998.  Tons shipped of
Company-owned  steel  products  in the first  quarter of fiscal  2000  increased
approximately  8% compared to the first quarter of fiscal 1999 while the average
selling price of Company-owned  steel products for the first quarter fiscal 2000
declined   approximately   2%  from  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 and to develop a
substantial amount of new business with both existing and new customers.

The gross profit  margin was 12.6% in the first  quarter of fiscal 2000 compared
to 13.2% in the first  quarter of fiscal 1999.  The  decreases are primarily the
result of an increase in raw material  prices and a reduction in toll processing
revenues as compared to the first quarter of last year.  Strong demand for steel
products and the effort of the domestic  steel  industry to curtail 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
recent months,  and resulted in the domestic  producers  increasing raw material
prices.  The Company expects further increases in raw material costs in 2000 and
as a result,  expects gross margins to be negatively  impacted in the event that
the Company is unable to pass along  corresponding  sales price increases to its
customers.  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 remaining of fiscal 2000. Toll processing,  primarily
of  customer-owned  steel,  generates  higher gross margin  percentages than the
traditional processing of Company-owned steel.

                                       9
<PAGE>


Steel  Technologies  continues  to  actively  manage  the level at which  sales,
general and administrative costs are added to its cost structure. Sales, general
and  administrative  costs  increased  approximately  3% for the current quarter
compared  to the  comparable  period  last  year.  The  increase  was  primarily
attributable to additional marketing expenses to support sales growth and recent
capacity  expansions  in Ohio,  South  Carolina and Mexico.  Sales,  general and
administrative  expenses  were 6.3% and 6.5% of sales for the first  quarter  of
fiscal 2000 and 1999, respectively.

The  Company's  share  of the  income  of  Mi-Tech  Steel,  Inc.,  (Mi-Tech)  an
unconsolidated  corporate  joint venture,  was $404,000 for the first quarter of
fiscal 2000 and $116,000, for the first quarter of fiscal 1999.  Improvements in
demand  for  Mi-Tech  products  and  services   positively   impacted  Mi-Tech's
profitability for the first quarter of fiscal 2000 as compared to the comparable
period of fiscal 1999. The Company expects a similar  contribution  from Mi-Tech
for the remaining quarters of fiscal 2000.

Net Interest  expense was  $1,344,000  and  $1,705,000  for the first quarter of
fiscal 2000 and 1999, respectively.  The decrease is primarily attributable to a
higher amount of interest income from Mexico and a reduction in interest expense
from  amortizing a gain generated by terminating an interest rate swap agreement
in fiscal  1999.  The company  expects  higher  interest  expense in  subsequent
quarters due to the generally  higher level of market interest rates as a result
of Federal Reserve monetary policy.

The effective income tax rate was  approximately  36.1% and 40.5%,  respectively
for the first  quarter of fiscal 2000 and 1999,  respectively.  The net decrease
arises from an increase  in the  benefit due to a higher  percentage  of overall
earnings from the Mi-Tech joint venture.

Liquidity and Capital Resources
-------------------------------
At December 31, 1999,  Steel  Technologies  had $98,880,000 of working  capital,
maintained  a  current  ratio  of  2.6:1  and had  total  debt  at 47% 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  three  months of fiscal
2000,  increased  inventory levels and higher accounts  receivables  without any
changes  in the  payables  contributed  to the use of  $1,325,000  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 for the three months of fiscal 2000 totaled $5,772,000. The
major  expenditures  were  for the  construction  of the new  Metamoros,  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 Metamoros, Mexico facility,  expansion of Steel Technologies
processing  capabilities and the recently completed  acquisition of Custom Steel
are expected to approximate $26,000,000.

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 $5,400,000 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 will be accounted for under the
purchase  method of  accounting.  Accordingly,  the result of the  operations of
Custom Steel will be included in the consolidated  financial statements from the
date of acquisition.

Steel Technologies  maintains an equity investment of approximately  $12,814,000
in its 90%-owned Mexican subsidiary.

                                       10
<PAGE>

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.

Steel  Technologies  has a  $100,000,000  line of credit  agreement  expiring on
December 31, 2001, with various  variable  options on the interest rate, none of
which are greater than the bank's prime. During the first quarter of fiscal 2000
the Company  borrowed  $12,000,000  for working  capital needs.  At December 31,
1999, there was $69,000,000 outstanding on the credit facility. In January 2000,
the company borrowed $13,000,000 for the purchase of Custom Steel.

The  line of  credit  is  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 line of  credit.  The  ten-year  notes
require principal payments through March 2005 and the line of credit is expected
to be  renewed  at the end of the term.  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 December 31, 1999,  Steel  Technologies  had  $108,732,000  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 January 22, 1998,  the Board of  Directors  approved a plan under which Steel
Technologies may repurchase up to 1,500,000  shares of its common stock.  Shares


                                       11
<PAGE>

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  1,096,000  shares of common stock,  including  216,000 during the
first quarter 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.

Year 2000 Compliance
--------------------
Steel Technologies' Year 2000 project (Project) addressed the issue of using two
digits,  rather  than four,  to define the  century.  Any  programs  with a time
sensitive  software may recognize a date using "00" as the year 1900 rather than
the year 2000, which could result in miscalculations or systems failures.

The  Project  focused   primarily  in  the  following   areas:   infrastructure,
applications,   manufacturing,   first  party   suppliers  and  customers.   The
infrastructure  section  consisted of hardware and systems  software  other than
application   software.  The application  software  section  included  both  the
conversion of  application  software that is not Year 2000  compliant and, where
applicable,  the  replacement  of  software.  The  manufacturing  section of the
Project related to the hardware, software and associated embedded computer chips
that are used in the operation of all facilities.  The first party suppliers and
customers section included the process of identifying and prioritizing  critical
suppliers  and  customers  and  communicating  with them about  their  plans and
progress  in  addressing  the Year 2000  problem.  All areas of The  Project and
contingency planning were completed by December 31, 1999.

The total cost related to becoming  Year 2000  compliant was not material to the
Company's  financial  position.  The estimated cost of the Year 2000 Project was
approximately $200,000 of which approximately $150,000 was expensed in the first
nine  months  of  fiscal  1999 and  $50,000  was  expensed  as of the end of the
Company's  fiscal year ended  September 30, 1998.  The Company did not incur any
additional material Year 2000 costs during the first quarter of fiscal 2000.

The company did not experience any material Year 2000 difficulties on January 1,
2000.


       Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material  change during the first three months ended  December
31, 1999 from the disclosures about market risk provided in the Company's Annual
Report on Form10-K for the year ended September 30, 1999.

                          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

                                       12
<PAGE>

SIGNATURES

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







   STEEL TECHNOLOGIES INC.
        (Registrant)







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




Dated February 3, 2000