Exhibit 99.1

Schnitzer Reports Strong Second Quarter Fiscal 2011 Financial Results and Continues Investment in Growth

Second Quarter Revenues Up 28%, Operating Income Up 61% and Diluted EPS Up 77% to $1.10

PORTLAND, Ore.--(BUSINESS WIRE)--April 4, 2011--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported diluted earnings per share from continuing operations of $1.10 for its fiscal 2011 second quarter ended February 28, 2010. This compares with diluted earnings per share of $0.62 during the second quarter of fiscal 2010.

Schnitzer reported second quarter fiscal 2011 revenues of $722 million, an increase of 28% from the second quarter of fiscal year 2010.

“Building on the momentum generated during the first quarter, we delivered our strongest second quarter performance since fiscal 2008. Year-over-year, our revenues grew by 28%, our operating income grew by 61% and our earnings per share grew by 77%,” said Tamara Lundgren, President and Chief Executive Officer. “Each of our segments delivered higher revenues and improved operating income margins and we continued to execute on our growth strategy through acquisitions and capital expenditures focused on improving our operating efficiencies and production yields.”

“Our strong balance sheet and access to capital enabled us to complete the acquisition of six metals recycling businesses and four auto parts stores while funding continued investments in new technologies and operational efficiencies,” said Lundgren.

Key business drivers during the second quarter of fiscal 2011 included the following:

• Metals Recycling Business (MRB) grew operating income by 45% as compared to last year’s second quarter, reflecting strong global demand and higher sales prices for both ferrous and nonferrous metals. In addition, aggregate ferrous volumes over the last four quarters continue to approximate the record volumes achieved in fiscal 2008 and nonferrous volumes are trending at a record run rate.
• Auto Parts Business (APB) achieved record second quarter operating income, generating 24% growth as compared to last year’s record second quarter results. In addition, we actively pursued our growth strategy with the acquisition of four stores, including one in Texas and three in Washington. Car purchase volumes also increased significantly from the prior year, reflecting the benefits from both organic and acquisition growth.
• Steel Manufacturing Business (SMB) delivered year-over-year financial improvement with near break-even operating income despite weak demand and highly competitive market conditions.

Metals Recycling Business

In the second quarter, our Metals Recycling Business shipped ferrous volumes of 1.1 million tons and nonferrous volumes of 121 million pounds and generated operating income of $42 million, a $16 million improvement over first quarter fiscal 2011 results.

“During the second quarter, we achieved operating income per ferrous ton of $38, nearly double the prior quarter, largely driven by improved market conditions, steady intake of scrap and increasing contributions from our nonferrous operations,” said Lundgren. “Demand in the export market continued its upward trend from the first quarter and the domestic ferrous markets rebounded, reflecting improving utilization at domestic mills.”

Sales Volumes: As anticipated, ferrous sales volumes of 1.1 million tons declined 6% as compared to the prior year, primarily due to the timing of shipments. Nonferrous sales volumes increased 16% as compared to the prior year, benefiting from increased production from enhanced processing technologies and early contributions from our recent acquisitions.

Export customers accounted for 78% of total ferrous sales volumes. Our ferrous and nonferrous products were shipped to 19 countries in the second quarter. The top export destinations were China, Egypt and South Korea.

Pricing: Higher demand in both the export and domestic markets contributed to higher average ferrous net sales prices during the second quarter as compared to the prior year and first quarter. Nonferrous prices also improved during the quarter due to strengthening demand for copper and aluminum in particular. Average ferrous and nonferrous prices during the quarter were 41% and 30% higher, respectively, than comparable prices in the second quarter of fiscal 2010.

Revenues increased 30% year-over-year and 8% sequentially, driven by higher average selling prices for both ferrous and nonferrous metals.

Margins: Operating income per ferrous ton was $38 in the second quarter of fiscal 2011, an increase from $21 in the first quarter of fiscal 2011. Operating income per ferrous ton during the second quarter benefited from higher selling prices and lagging average inventory costs for raw materials in the first half of the quarter, steady intake of scrap and increasing contributions from our nonferrous operations. In addition, transaction expenses associated with our recent acquisitions were more than offset by favorable customer contract settlements.

Metals Recycling Business: Outlook

The following summary of management’s outlook for the Metals Recycling Business in the third quarter of fiscal 2011 is subject to uncertainty that may affect future results.

Sales Volumes: Ferrous sales volumes are expected to increase by approximately 10% to 20% from second quarter levels due to normal seasonal improvements in supply flows. Nonferrous volumes are also expected to increase 10% to 15% from second quarter levels due to increased production and enhanced contributions from processing technologies. Both ferrous and nonferrous sales volumes will be positively impacted by the contributions from the recently completely acquisitions. As always, quarterly sales volumes are highly dependent upon the timing of shipments.

Pricing: Ferrous net selling prices, on average, are expected to approximate second quarter averages. Nonferrous prices are also expected to remain in line with second quarter levels.

Margins: Operating income per ferrous ton is expected to be slightly lower than the second quarter of fiscal 2011.

Auto Parts Business

Our Auto Parts Business delivered strong operating results, achieving operating income growth of 24% as compared to last year’s record second quarter.

“Our Auto Parts Business continued to generate higher revenues and operating income and to deliver strong margins while growing car purchase volumes 16%,” said Lundgren. “In addition to improved operating efficiencies, we continued to build scale with expanded operations in Washington, California and Texas. In particular, our Washington acquisition provides a new franchise opportunity in the Pacific Northwest as well as synergies with our Metals Recycling Business.”

Revenues: Revenues increased 32% from the prior year quarter and 9% sequentially. Both comparisons reflect the impact of higher commodity prices on revenues from scrap and core sales and the partial benefit from the acquisitions completed during the quarter.

Margins: Operating margins of 22% approximated the strong results achieved in both the first quarter of fiscal 2011 and the second quarter of fiscal 2010.

Auto Parts Business: Outlook

The following summary of management’s outlook for the Auto Parts Business in the third quarter of fiscal 2011 is subject to uncertainty that may affect future results.

Revenues: Revenues are expected to increase 10% to 15% from the second quarter of 2011 due to normal seasonal improvements in admissions and parts sales and the full quarter impact of new stores.

Margins: Third quarter operating margins are expected to approximate the second quarter of 2011.

Steel Manufacturing Business

In the second quarter, our Steel Manufacturing Business continued to be negatively impacted by weak demand for finished steel products in its West Coast markets.

“Our Steel Manufacturing Business generated improved year-over-year performance despite ongoing weak demand in the West Coast construction markets,” said Lundgren. “We expect to benefit from the normal seasonal improvement in construction during the summer months and to continue to maximize value from our product diversification and operational efficiencies.”

Sales Volumes: Finished steel sales volumes of 99 thousand tons improved 3% from the prior year quarter and 1% sequentially.

Pricing: Average net sales prices for finished steel products increased by 24%, as compared to the prior year quarter, and 8%, as compared to the first quarter of fiscal 2011.

Margins: Higher sales prices resulted in improved operating margins on both a year-over-year and sequential basis.

Steel Manufacturing Business: Outlook

The following summary of management’s outlook for the Steel Manufacturing Business in the third quarter of fiscal 2011 is subject to uncertainty that may affect future results.

Sales Volumes: Sales volumes are expected to be slightly higher than the second quarter of fiscal 2011 due to normal seasonal increases in construction activity.

Pricing: Average net sales prices are expected to increase from the second quarter fiscal 2011 as domestic demand continues to improve.

Margins: Third quarter operating margins are expected to improve slightly due to higher throughput and higher average pricing as compared to the second quarter.

Corporate Items

Other income included $3 million from unrealized transaction gains relating to foreign currency forward contracts associated with a Canadian acquisition which closed after the end of the second quarter.

The Company’s effective tax rate for the quarter was 33%, which is consistent with the expected tax rate for the remainder of the fiscal year.

Total debt increased from the first quarter by $141 million to $321 million, primarily reflecting the cost of acquisitions during the second quarter.

The Company closed an amended $650 million credit facility which increases our line of credit from $450 million, extends the maturity until 2016 and includes a $30 million Canadian facility to support our expansion in Western Canada. The successful completion of this financing provides additional flexibility to continue our strategy of investing capital to improve operating performance and to grow our geographic platform in order to benefit from the positive trends for recycled metals worldwide.

Analysts' Conference Call: Second Quarter of Fiscal 2011

A conference call and slide presentation to discuss results will be held today, April 4, 2011, at 5:00 p.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data provided in the following pages. The slides and related materials will be available prior to the call on the website.

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 57 operating facilities located in 14 states, Puerto Rico and Western Canada. The business has seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company's integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its 50 self-service facilities located in 14 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 105^th year of operations in fiscal 2011.

Safe Harbor for Forward-Looking Statements

This news release, particularly the Outlook sections, contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company's outlook for the business and statements as to expected product demand, pricing, sales volumes, revenues, operating margins, operating income and benefits of acquisitions. Such statements can generally be identified because they contain "expect," "believe," "anticipate," "estimate" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting the Company that could cause actual results to differ materially from current expectations are the following: volatile supply and demand conditions affecting prices and volumes in the markets for both the Company's products and the raw materials it purchases; world economic conditions; world political conditions; the Company's ability to match output with demand; changes in federal and state income tax laws; government regulations and environmental matters; impact of pending or new laws and regulations regarding imports and exports into the United States and other countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates and availability of transportation; loss of key personnel; the inability to obtain sufficient quantities of scrap metal to support current orders; purchase price estimates made during acquisitions; business integration issues relating to acquisitions of businesses; new accounting pronouncements; availability of capital resources; creditworthiness of and availability of credit to suppliers and customers; adverse impact of climate change, including as a result of treaties, legislation or regulations; natural disasters and civil disturbances; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in "Management's Discussion and Analysis of Financial Condition and Results of Operations" or "Risk Factors" in the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company's forward-looking statements. Consequently, the reader should not consider any such list to be a complete statement of all potential risks or uncertainties. The Company does not assume any obligation to update any forward-looking statement, except as may be required by law.

CONTACT:
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Chip Terhune, 503-265-6370
cterhune@schn.com
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Company Info:
www.schnitzersteel.com
ir@schn.com