EXHIBIT 23.1


                       Consent of Independent Accountants


We hereby consent to the incorporation by reference in this Registration
Statement on Form S-8 of our report dated September 27, 1996, except as to Note
13, which is as of November 15, 1996, appearing on page 26 of the Schnitzer
Steel Industries, Inc. Annual Report on Form 10-K for the year ended August 31,
1996. We also consent to the incorporation by reference of our report on the
Financial Statement Schedule, which appears on page 52 of such Annual Report on
Form 10-K.


PRICE WATERHOUSE LLP

February 14, 1997
Portland, Oregon