1. 1 November 2006

2. 2 Schnitzer Steel Business Overview Schnitzer Steel Business Overview Three Important Businesses Forming One Integral Company Metals Recycling Steel Manufacturing Auto Parts One of the countrys largest metals recyclers One of the countrys largest metals recyclers Sales volumes of >5 million ferrous tons annually Sales volumes of >5 million ferrous tons annually Non ferrous sales volumes of over 300 million pounds annually Non ferrous sales volumes of over 300 million pounds annually 35 self-service stores 35 self-service stores 17 full-service locations 17 full-service locations ~250,000 cars processed per year ~250,000 cars processed per year ~4mm of annual retail admissions ~4mm of annual retail admissions 102% sales growth from FY05- FY06 102% sales growth from FY05- FY06 700-800k tons annual capacity 700-800k tons annual capacity Record performance for last two consecutive years Record performance for last two consecutive years Favorable West Coast steel market conditions Favorable West Coast steel market conditions Vertically integrated metals recycler with 81 operations in 22 states and Western Canada Vertically integrated metals recycler with 81 operations in 22 states and Western Canada Over 3,000 employees Over 3,000 employees Source of Supply Source of Scrap Supply Growth Capital

3. 3 Investor Highlights Significant 2006 accomplishments Significant 2006 accomplishments Dramatic increase in scale and geographic presence Dramatic increase in scale and geographic presence Successful integration of acquisitions Successful integration of acquisitions Strong financial performance Strong financial performance Significant investments in technology to increase capacity and improve productivity Significant investments in technology to increase capacity and improve productivity Positive long-term fundamentals and competitive advantages underpinning business outlook Positive long-term fundamentals and competitive advantages underpinning business outlook Management optimistic about 2007 opportunities to create shareholder value Management optimistic about 2007 opportunities to create shareholder value Strong balance sheet and cash flows provide flexibility to pursue further technological improvements, value creating acquisitions and share repurchases Strong balance sheet and cash flows provide flexibility to pursue further technological improvements, value creating acquisitions and share repurchases

4. 4 Significant 2006 Accomplishments- Scale Dramatic increase in scale and geographic presence Dramatic increase in scale and geographic presence Successful integration of four acquisitions Successful integration of four acquisitions Doubling of ferrous processing volumes; 2.5X increase in non ferrous volumes Doubling of ferrous processing volumes; 2.5X increase in non ferrous volumes Doubling of auto parts revenue; 17% increase in self-service locations and entry into full-service market Doubling of auto parts revenue; 17% increase in self-service locations and entry into full-service market 100k ton increase in steel manufacturing sales volumes 100k ton increase in steel manufacturing sales volumes Ferrous Tons (Millions) Non Ferrous Pounds (Millions)

5. 5 Significant 2006 Accomplishments- Successful Integration Completed Four Acquisitions and Committed to Fifth Completed Four Acquisitions and Committed to Fifth Three of Four Acquisitions Transformed the Business Platform Three of Four Acquisitions Transformed the Business Platform Metals Recycling Metals Recycling Substantially expanded geographic footprint Substantially expanded geographic footprint Doubled revenues Doubled revenues Significantly increased volume of material processed Significantly increased volume of material processed Auto Parts Auto Parts Doubled Revenues Doubled Revenues Increased investment in inventory to improve customer fill rates Increased investment in inventory to improve customer fill rates Closed underperforming full service sites Closed underperforming full service sites Centralized administrative functions Centralized administrative functions Information Technology Information Technology Installed common platform for all businesses Installed common platform for all businesses Acquisitions accretive ahead of schedule Acquisitions accretive ahead of schedule Developed Core Competency In Integration, Setting Stage for Future Acquisitions

6. 6 Significant 2006 Accomplishments- Impressive Financial Results Strong Financial Performance Strong Financial Performance Second highest EPS ($4.65) in Companys history Second highest EPS ($4.65) in Companys history Revenues increased by ~$1 billion Revenues increased by ~$1 billion Record operating income in Auto Parts and Steel Businesses Record operating income in Auto Parts and Steel Businesses Sequential increase in Metals Recycling Business operating income Sequential increase in Metals Recycling Business operating income Revenues (Millions) Earnings Per Share

7. 7 Significant 2006 Accomplishments- Improved productivity Capital investments in technology and infrastructure improvements resulted in improved productivity in steel and metals recycling businesses……. Capital investments in technology and infrastructure improvements resulted in improved productivity in steel and metals recycling businesses……. Contributed to 17% reduction in processing costs from first to fourth quarter Contributed to 17% reduction in processing costs from first to fourth quarter Resulted in 14% reduction in year over year cost per ton in the Steel Manufacturing Business Resulted in 14% reduction in year over year cost per ton in the Steel Manufacturing Business

8. 8 Growth Drivers for Metals Recycling Business Strong Industry Fundamentals Source: 2006 World Steel Dynamics, IISI, and Wall Street Research Leads to scrap demand growth Forecast Demand is robust, …but supply remains tight Forecasted increase in steel production Total Steel and Electric Arc Furnace (EAF) ProductionWorldwide Global Scrap Demand Required Scrap Recovery Rates

9. 9 Growth Drivers for Metals Recycling Business Strategic Deep Water Ports Locations Export Facility Ferrous Recycling Facility

10. 10 Growth Drivers for Metals Recycling Business: Competitive Advantages Strong market position in West Coast and Northeast markets; new presence in manufacturing rich Southeast market Strong market position in West Coast and Northeast markets; new presence in manufacturing rich Southeast market Bi-coastal port facilities provide barrier to entry and ability to access diverse export markets Bi-coastal port facilities provide barrier to entry and ability to access diverse export markets Significant investment in technology drives lower processing costs Significant investment in technology drives lower processing costs 2006 Operating Margin (1) Average 11.7% (1) Excludes Trading Operation Competitive advantages reflected in attractive operating margins

11. 11 Auto Parts Industry Drivers Underpin Growth Source: 2005 AAIA Factbook (* - 2005 Estimate) Aging US Vehicle Population Annual Miles Driven (in Trillions) Healthy growth projected for full service and self-service automotive industry segments Healthy growth projected for full service and self-service automotive industry segments Older vehicles are still on the road, driving more miles, resulting in higher demand for spare parts to service these older vehicles Older vehicles are still on the road, driving more miles, resulting in higher demand for spare parts to service these older vehicles

12. 12 Schnitzers Auto Parts Market Position Schnitzer is well-positioned within two high growth areas of the Used Auto Parts Industry Full-Service $4-6 billion Self-Service $1-2 billion Segment Sales Growth Rates (a) Market Size (a) Source: 2005 AAIA Factbook (* - 2005 Estimate) Revenues (in millions)Locations

13. 13 2007 Strategic Focus--Continued Growth Increasing operating leverage through productivity improvements Increasing operating leverage through productivity improvements Higher processing volumes to feed mega-shredders Higher processing volumes to feed mega-shredders More rapid inventory turns More rapid inventory turns Using scale to drive down costs Using scale to drive down costs Focus on customer requirements Focus on customer requirements Growth through value-enhancing acquisitions Growth through value-enhancing acquisitions Fragmented markets provide opportunity for further consolidationdisciplined approach based on meeting key criteria: Fragmented markets provide opportunity for further consolidationdisciplined approach based on meeting key criteria: Strong franchises Strong franchises Opportunity to capture value through management or capital investment Opportunity to capture value through management or capital investment Synergies to existing Auto Parts or Metals Recycling Businesses Synergies to existing Auto Parts or Metals Recycling Businesses

14. 14 2007 Strategic Focus--Technology Continued investments in technology and improved logistics Continued investments in technology and improved logistics Completion of mega-shredder installations (Boston, Oakland, Portland) to increase capacity and lower processing costs Completion of mega-shredder installations (Boston, Oakland, Portland) to increase capacity and lower processing costs Further installation of ferrous and non ferrous sorting systems to improve product quality and recovery of high value materials Further installation of ferrous and non ferrous sorting systems to improve product quality and recovery of high value materials Continued improvements to major facilities to upgrade equipment and improve processing flow Continued improvements to major facilities to upgrade equipment and improve processing flow Modifications to reheat furnace and billet yard craneway at steel mill to increase capacity Modifications to reheat furnace and billet yard craneway at steel mill to increase capacity Strict criteria applied to 2007 budget process to ensure discretionary projects provide attractive returns Strict criteria applied to 2007 budget process to ensure discretionary projects provide attractive returns 33% ROI and 36 month pay-back 33% ROI and 36 month pay-back

15. 15 Value Creating Investments Companys strong balance sheet, operating cash flows and access to capital provide flexibility to pursue multiple options to create value Companys strong balance sheet, operating cash flows and access to capital provide flexibility to pursue multiple options to create value Accretive acquisitions Accretive acquisitions Investments in technology Investments in technology Share repurchase-Board of Directors have approved repurchase of up to 4.7 million shares. No repurchase activity since 2001 Share repurchase-Board of Directors have approved repurchase of up to 4.7 million shares. No repurchase activity since 2001 Dollars in Millions Net Debt/EBITDA.3 x --.29 x

16. 16 Overall Management Objectives Industry leader in creating shareholder value Industry leader in creating shareholder value Metals Recycling: product differentiation Metals Recycling: product differentiation Auto Parts: managing the automobile lifecycle Auto Parts: managing the automobile lifecycle Steel Manufacturing: productivity and customer satisfaction Steel Manufacturing: productivity and customer satisfaction Improve productivity Improve productivity Integration of acquisitions Integration of acquisitions Investment in infrastructure Investment in infrastructure Technological enhancements Technological enhancements Seek growth Seek growth Additional value-creating acquisitions Additional value-creating acquisitions New technologies New technologies

17. 17 Investor Highlights-Recap Significant 2006 Accomplishments Significant 2006 Accomplishments Positive long-term fundamentals and competitive advantages underpinning business outlook Positive long-term fundamentals and competitive advantages underpinning business outlook Management optimistic about 2007 opportunities to create shareholder value Management optimistic about 2007 opportunities to create shareholder value

18. 18 Appendix: Detailed Business Segment Overview

19. 19 Metals Recycling Business ~4 million tons of ferrous scrap processed and sold annually ~4 million tons of ferrous scrap processed and sold annually >1 million tons sold annually by Global Trading Business through supplies obtained in Russian and Baltic Sea region >1 million tons sold annually by Global Trading Business through supplies obtained in Russian and Baltic Sea region One of countries largest exporters of ferrous scrap. Six deep water port facilities provide competitive advantage and barrier to entry One of countries largest exporters of ferrous scrap. Six deep water port facilities provide competitive advantage and barrier to entry Bi-coastal operations in 28 cities and 11 states Bi-coastal operations in 28 cities and 11 states Strong industry fundamentals have resulted in a significant increase in average prices compared to prior cycles Strong industry fundamentals have resulted in a significant increase in average prices compared to prior cycles Positive outlook Positive outlook

20. 20 Used Auto Parts Business 35 stores 35 stores 250,000+ cars processed per year 250,000+ cars processed per year ~4 million annual retail customers ~4 million annual retail customers attractive operating margins attractive operating margins Complementary to metals recycling businesssource of scrap supply Complementary to metals recycling businesssource of scrap supply Full-service Full-service Acquired in Oct 2005 Acquired in Oct 2005 17 locations 17 locations Provides great locations and access to larger full-service sector of used parts market Provides great locations and access to larger full-service sector of used parts market Self-service

21. 21 Steel Manufacturing Business The steel manufacturing business serves as a source of demand for the Companys metals recycling business, contributing to vertical integration model The steel manufacturing business serves as a source of demand for the Companys metals recycling business, contributing to vertical integration model 700-800k tons annual capacity for rebar, wire rod and other long steel products 700-800k tons annual capacity for rebar, wire rod and other long steel products Near-term business outlook remains bright Near-term business outlook remains bright Strong West Coast demand for steel products Strong West Coast demand for steel products Recent consolidation in West Coast capacity has improved supply/demand balance Recent consolidation in West Coast capacity has improved supply/demand balance New state of the art Electric Arc Furnace has increased melt shop capacity and improved productivity New state of the art Electric Arc Furnace has increased melt shop capacity and improved productivity Planned improvements in rolling mill will improve output of finished products, provide greater flexibility to meet customer demand and further improve productivity Planned improvements in rolling mill will improve output of finished products, provide greater flexibility to meet customer demand and further improve productivity