AMENDMENT NO. 3 TO BUSINESS LOAN AGREEMENT

AMENDMENT NO. THREE TO FIRST AMENDED AND RESTATED
BUSINESS LOAN AGREEMENT



This Amendment No. Three to First Amended and Restated Business Loan
Agreement (this "Amendment") dated as of October 1, 1996, is between Bank of
America National Trust and Savings Association (the "Bank") and Reliance Steel
& Aluminum Co. (the "Borrower").


RECITALS

A. The Bank and the Borrower entered into a certain First Amended
and Restated Business Loan Agreement dated as of June 26, 1996, as modified by
amendments dated as of September 25, 1996, and September 27, 1996 an Amendment
No. One to First Amended and Restated Business Loan Agreement (as amended, the
"Agreement").

B. The Bank and the Borrower desire to amend the Agreement.


AGREEMENT

1. Definitions. Capitalized terms used but not defined in this
Amendment shall have the meanings given to them in the Agreement.

2. Amendments. The Agreement is hereby amended as follows:

In Paragraph 1.6(e) of the Agreement, "0.875" is amended to
read "0.625."

3. Representations and Warranties. When the Borrower signs this
Amendment, the Borrower represents and warrants to the Bank that: (a) there is
no event which is, or with notice or lapse of time or both would be, a default
under the Agreement, (b) the representations and warranties in the Agreement
are true as of the date of this Amendment as if made on the date of this
Amendment, (c) this Amendment is within the Borrower's powers, has been duly
authorized, and does not conflict with any of the Borrower's organizational
papers, and (d) this Amendment does not conflict with any law, agreement, or
obligation by which the Borrower is bound.

4. Effect of Amendment. Except as provided in this Amendment, all of
the terms and conditions of the Agreement shall remain in full force and
effect.





- 1 -

This Amendment is executed as of the date stated at the beginning of
this Amendment.




BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION


By: /s/Donald G. Farris
--------------------------------
Donald G. Farris
Title: Vice President


RELIANCE STEEL & ALUMINUM CO.


By: /s/David H. Hannah
--------------------------------

Title: President
-----------------------------


By: /s/Steven S. Weis
--------------------------------
Title: Chief Financial Officer
----------------------------






- 2 -