Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 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. Yesþ Noo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yeso Noo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Indicate by check mark whether the registrant is a shell company (as defined Rule 12b-2 of the Exchange Act). Yeso Noþ

Indicate the number of shares of each of the issuer’s classes of common stock, as of the latest practicable date:

The accompanying consolidated financial statements have been prepared from the financial records of Olympic Steel, Inc. and its wholly-owned subsidiaries (collectively, Olympic or the Company), without audit and reflect all normal and recurring adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods covered by this report. Year-to-date results are not necessarily indicative of 20102011 annual results and these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.2010. All significant intercompany transactions and balances have been eliminated in consolidation.

Outstanding checks of $13.9$13.1 million, $10.2 million, $1.7 million, $20.3$13.1 million and $13.9$9.6 million, as of September 30, 2010,March 31, 2011, December 31, 2009, September 30, 2009, December2010 and March 31, 2008 and December 31, 2007,2010, respectively, represent checks issued that have not yet been presented for payment to the banks and are classified as accounts payable in the Company’s Consolidated Balance Sheet. The Company typically funds these overdrafts through normal collections of funds or transfers from bank balances at other financial institutions.

In June 2010, the Company revised the presentation of changes of outstanding checks from a financing activity to an operating activity in its Consolidated Statement of Cash Flows with a conforming change to the prior period presentation. The effect of this revision had no impact on the net increase (decrease) in cash; however, it changed the cash provided byused in operating activities for the nine-monththree-month period ended September 30, 2009 and the years ended DecemberMarch 31, 2009, 2008 and 20072010 from $69.1$(24.5) million $67.4 million, $6.2 million and $64.7 million, respectively, as previously disclosed in the quarterly report on Form 10-Q for the quarterlythree month period ended September 30, 2009 and the Annual Reports on Form 10-K for the years ended DecemberMarch 31, 2009 and 2008,2010 to $50.6$(25.1) million, $57.3 million, $12.5 million and $61.7 million, respectively, with a corresponding change in the cash flows provided by (used in) financing activities for the ninethree month period ended September 30, 2009 and the years ended DecemberMarch 31, 2009, 2008 and

and specific customer collection issues that have been identified. Estimations are based upon a calculated percentage of accounts receivable, which remains fairly level from year to year, and judgments about the probable effects of economic conditions on certain customers, which can fluctuate significantly from year to year. The Company cannot guarantee that the rate of future credit losses will be similar to past experience. The Company considers all available information when assessing the adequacy of its allowance for doubtful accounts each quarter.

Steel inventories consist of the following:

The ABL Facilityrevolving credit facility requires the Company to comply with various covenants, the most significant of which include: (i) until maturity of the ABL Facility,revolving credit facility, if any commitments or obligations are outstanding and the Company’s availability is less than the greater of $20 million or 15% of the aggregate amount of revolver commitments, then the Company must maintain a ratio of EBITDA minus certain capital expenditures and cash taxes paid to fixed charges of at least 1.10 to 1.00 for the most recent twelve fiscal month period; (ii) limitations on dividend payments; (iii) restrictions on additional indebtedness; and (iv) limitations on investments and joint ventures. The Company has the option to borrow based on the agent’s base rate plus a premium ranging from 1.00% to 1.50% or the London Interbank Offered Rate (LIBOR) plus a premium ranging from 2.50% to 3.00%.

As of September 30, 2010,March 31, 2011, the Company was in compliance with its covenants and had approximately $73$42 million of availability under the ABL Facility.revolving credit facility.

The fair value of our derivative instruments are set forth below. The fair value is determined based on quoted market prices and reflect the estimated amounts the Company would pay or receive to terminate the nickel swaps.

By June 30,December 31, 2010, all expense with respect to non-vested stock option awards had been recognized and amortized into expense.

The Olympic Steel 2007 Omnibus Incentive Plan (the Plan) was approved by the Company’s Board of Directors and shareholders in 2007. The Plan authorizes the Company to grant stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, and other stock- and cash-based awards to employees and Directors of, and consultants to, the Company and its affiliates. Under the Plan, 500,000 shares of common stock are available for equity grants.

The Compensation Committee of the Company’s Board of Directors also granted 34,379 and 54,024 performance-earned restricted stock units (PERSUs) in the aggregate to the members of senior management of the Company on January 2, 2008 and January 2, 2009, respectively. The PERSUs may be earned based on the Company’s performance for a period of 36 months from the date of grant, and would be converted to shares of common stock based on the achievement of two separate financial measures: (1) the Company’s EBITDA (50% weighted) and (2) return on invested capital (50% weighted). No shares will be earned unless the threshold amounts for the performance measures are met. Up to 150% of the targeted amount of PERSUs may be earned.

The fair value of each RSU and PERSU was estimated to be the closing price of the Company’s common stock on the date of the grant, which was $26.91, $33.85, $21.68 and $32.20 for the grants on March 1, 2011, January 4, 2010, January 2, 2009 and January 2, 2008, respectively.

Stock-based compensation expense recognized on RSUs and PERSUs for the three and nine months ended September 30,March 31, 2011 and 2010, and 2009, respectively, is summarized in the following table:

The following table summarizes the activity related to RSUs for the ninethree months ended September 30, 2010:March 31, 2011:

Interest paid during the first ninethree months of 20102011 totaled $1.1 million,$889 thousand, compared to $1.7 million$169 thousand in the first ninethree months of 2009.2010. Income taxes refunded, net of income taxes paid during the first ninethree months of 2010 and 2009, respectively,2011 totaled $36.4 million and $2.0 million.$22 thousand compared to income taxes refunded of $7 thousand for the first three months of 2010.

There were no accounting pronouncements issued duringor effective in the first nine monthsquarter of 20102011 expected to have a future material impact on Olympic’s financial statements.

The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and accompanying notes contained herein and our consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2009.2010. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause a difference include, but are not limited to, those discussed under Item 1A (Risk Factors) in our Annual Report on Form 10-K for the year ended December 31, 2009.2010. The following section is qualified in its entirety by the more detailed information, including our financial statements and the notes thereto, which appear elsewhere in this Quarterly Report on Form 10-Q.

We are a leading U.S. metals service center with over 5657 years of experience. Our primary focus is on the direct sale and distribution of large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products. We act as an intermediary between metal producers and manufacturers that require processed metal for their operations. We serve customers in most carbon steel consuming industries, including manufacturers and fabricators of transportation and material handling equipment, construction and farm machinery, storage tanks, environmental and energy generation equipment, automobiles, food service and electrical equipment, military vehicles and equipment, as well as general and plate fabricators and metalmetals service centers. We distribute our products primarily through a direct sales force.

We operateDuring the first quarter of 2011 we operated as a single business segment with 15 strategically located16 strategically-located processing and distribution facilities in Connecticut, Georgia, Illinois, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Pennsylvania and Washington. In the third quarter of 2010, we purchased our 16^th facility for $1.4 million, which is located in Mt. Sterling, Kentucky. The facility is expected to become operational in the first quarter of 2011. The Company did not renew its lease in South Carolina and no longer operates there. OurThis geographic footprint allows us to focus on regional customers

We sell a broad range of products, many of which have different gross profits and margins. Products that have more value-added processing generally have a greater gross profit and higher margins. Accordingly, our overall gross profit is affected by, among other things, product mix, the amount of processing performed, the demand for and availability of steel,metal, volatility in selling prices and material purchase costs. We also perform toll processing of customer-owned steel.metal. We sell certain products internationally, primarily in Puerto Rico and Mexico. All international sales and payments are made in U.S. dollars. Recent international sales have been immaterial to our consolidated financial results.

Our results of operations are affected by numerous external factors including, but not limited to: general and global business, economic, financial, banking and political conditions; competition; metal pricing, demand and availability; energy prices; pricing and availability of raw materials used in the production of metals; inventory held in the supply chain; customer demand for metal; customers’ ability to manage their credit line availability; and layoffs or work stoppages by our own, our suppliers’ or our customers’ personnel. The metals industry also continues to be affected by the global consolidation of our suppliers, competitors and end-use customers.

Like many other service centers, we maintain substantial inventories of metal to accommodate the short lead times and just-in-time delivery requirements of our customers. Accordingly, we purchase metal in an effort to maintain our inventory at levels that we believe to be appropriate to satisfy the anticipated needs of our customers based upon customer forecasts, historic buying practices, supply agreements with customers and market conditions. Our commitments to purchase metal are generally at prevailing market prices in effect at the time we place our orders. When metal prices increase, competitive conditions will influence how much of the price increase we can pass on to our customers. To the extent we are unable to pass on future price increases in our raw materials to our customers, the net sales and profitability of our business could be adversely affected. When metal prices decline, customer demands for lower prices and

our competitors’ responses to those demands could result in lower sale prices and, consequently, lower margins as we use existing metal inventory.

The following table sets forth certain income statement data for the three and nine months ended September 30,March 31, 2011 and 2010 and 2009 (dollars are shown in thousands):

and processing expense resulting from more hours worked due to the increased volume; and selling costs, including higher sales incentives, resulting from increased tons sold and sales. In addition, performance based incentives increased as well during the first nine monthsquarter of 2009.2011. As a percentage of net sales, operating expenses decreased to 18.5%15.7% for the thirdfirst quarter of 20102011 from 23.3%19.1% in the comparable 20092010 period. As a percentage of net sales, operating expenses decreased to 18.4% for the first nine months of 2010 from 22.8% in the comparable 2009 period. During 2010, variable operating expenses such as distribution and selling costs have increased as a result of increased shipment levels. In order to meet increased customer production schedules, headcount, the use of temporary labor and overtime hours have all increased. In addition, during the end of the first and second quarters of 2010, we phased in restorations for pay originally reduced in 2009. The impact of the pay restorations was

For the ninethree months ended September 30, 2010,March 31, 2011, we used $41.9$16.5 million of net cash for operations, including $49.6of which $16.5 million which was used forgenerated from working capital.

During the first ninethree months of 2010,2011, we spent $10.7$7.9 million on capital expenditures. The expenditures were primarily attributable to progress payments on the new temper mill, which will be located in Gary, Indiana, additional processing equipment at our existing facilities and continued investments associated within our new business systems. During the remainder of 2011, we expect to spend approximately $30 million to $40 million for capital expenditures primarily related to the investment in our new business system implementations, and value-added equipment in existing facilities. In the third quarter of 2010, we purchased our 16^th facility which is located in Mt. Sterling, Kentucky and which is expected to become operational in the first quarter of 2011. During the remainder of 2010, we expect to continue to invest in our business systems, value-added equipment and maintenance-type capital expenditures. In November 2010, the Company signed agreements to purchase a new temper mill and cut-to-length line, with plans to locate it on United States Steel Corporation’s (U.S. Steel) Gary Works facility in Gary, Indiana. Terms of the agreement with U.S. Steel are being finalized, and are subject to change. The Company expects to invest approximately $25 million in the new temper mill project. The project includes the purchase of an approximate 150,000 square foot facility to house a cut-to-length line, a four-high temper mill, and multiple pieces of plate burning equipment. The temper mill equipment is expected to

1.10 to 1.00 for the most recent twelve fiscal month period; (ii) limitations on dividend payments; (iii) restrictions on additional indebtedness; and (iv) limitations on investments and joint ventures.

This Quarterly Report on Form 10-Q and other documents we file with the SEC contain various forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, business, our beliefs and management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, conferences, webcasts, phone calls and conference calls. Words such as “may,” “will,” “anticipate,” “should,” “intend,” “expect,” “believe,” “estimate,” “project,” “plan,” “potential,” and “continue,” as well as the negative of these terms or 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

duties and tariffs and currency exchange rates. This volatility can significantly affect the baseavailability and cost of raw materials for us.

We, like many other metals service centers, maintain substantial inventories of metal to accommodate the short lead times and just-in-time delivery requirements of our customers. Accordingly, we purchase metal in an effort to maintain our inventory at levels that we believe to be appropriate to satisfy the anticipated needs of our customers based upon historic buying practices, supply agreements with customers and market conditions. Our commitments to purchase metal are generally at prevailing market prices in effect at the time we place our orders. We have no long-term, fixed-price metal purchase contracts. When metal prices increase, competitive conditions will influence how much of the price of carbon flat-rolled steel has fluctuated significantly and rapidly. We witnessed unprecedented steel producerincrease we can pass on to our customers. To the extent we are unable to pass on future price increases during 2008 followed by rapidin our raw materials to our customers, the net sales and steep steel price declines during 2009. Rapidly decliningprofitability of our business could be adversely affected. When metal prices as we experienced during 2009, reduceddecline, customer demands for lower prices and our gross profit margin percentagescompetitors’ responses to levels that werethose demands could result in lower than our historical levels,sale prices and, resulted inconsequently, lower margins and inventory lower of cost or market adjustments. Higher inventory levels held by us, other service centersadjustments as we use existing inventory. Significant or end-use customersrapid declines in metal prices or reductions in sales volumes could cause competitive pressures that could also reduce gross profit. Lower raw material costs for steel producers couldadversely impact our ability to remain in compliance with certain financial covenants in our revolving credit facility, as well as result in customer demands for lower cost product, resulting in lower selling prices. Higher raw material costs for steel producersus incurring inventory or goodwill impairment charges. Changing metal prices therefore could cause the price of steel to increase. significantly impact our net sales, gross margins, operating income and net income.

Rising prices result in higher working capital requirements for us and our customers. Some customers may not have sufficient credit lines or liquidity to absorb significant increases in the price of steel. While we have generally been successful in the past in passing on producers’ price increases and surcharges to our customers, there is no guarantee that we will be able to pass on price increases to our customers in the future.

Inflation generally affects us by increasing the cost of employee wages and benefits, transportation services, processing equipment, energy and borrowings under our ABL Facility.revolving credit facility. General inflation, excluding increases in the price of steel and increased distribution expense, has not had a material effect on our financial results during the past two years.

We are exposed to the impact of fluctuating steel prices and interest rate changes. During the first ninethree months of 20102011 we entered into nickel swaps at the request of our customers. While these derivatives are intended to be effective in helping us manage risk, they have not been designated as hedging instruments. For certain customers, we enter into contractual relationships that entitle us to pass-through the economic effect of trading positions that we take with other third parties on our customers’ behalf.

Our primary interest rate risk exposure results from variable rate debt. We have not entered into any interest rate hedge transactions for speculative purposes or otherwise. However, we do have the option to enter into 30- to 180-day fixed base rate Euro loans under the ABL Facility.revolving credit facility.

The evaluation required by Rule 13a-15 of the Securities Exchange Act of 1934 of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report has been carried out under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. These disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in reports that

Items 1, 1A, 2, 3 4 and 54 of this Part II are either inapplicable or are answered in the negative and are omitted pursuant to the instructions to Part II.

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.