1
   
                                                                     Exhibit 5.1
    
 
   
                 KAHN, KLEINMAN, YANOWITZ & ARNSON CO., L.P.A.
    
   
                                ATTORNEYS AT LAW
    
   
                             THE TOWER AT ERIEVIEW
    
   
                                   SUITE 2600
    
   
                           CLEVELAND, OHIO 44114-1824
    
   
                                 (216) 696-3311
    
   
                         FAX (216) 696-1009 26TH FLOOR
    
   
                         FAX (216) 696-1524 25TH FLOOR
    
 
   
                                 July 19, 1996
    
 
   
Olympic Steel, Inc.
    
   
5080 Richmond Road
    
   
Cleveland, Ohio 44146-1392
    
 
   
     In connection with the filing by Olympic Steel, Inc., an Ohio corporation
(the "Company"), with the Securities and Exchange Commission under the
provisions of the Securities Act of 1933, as amended, of a Registration
Statement on Form S-3, as amended (333-7395), with respect to up to 3,450,000
Common Shares, without par value, of the Company (the "Shares"), to be sold by
the Company and certain selling shareholders, we have examined the following:
(i) the Amended and Restated Articles of Incorporation, as currently in effect,
(ii) the Amended and Restated Code of Regulations of the Company, as currently
in effect; (iii) the Registration Statement on Form S-3, as amended (including
Exhibits thereto) filed with the Securities and Exchange Commission; (iv) the
form of Underwriting Agreement pursuant to which the Shares are to be purchased
by the Underwriters and resold in a public offering; and (v) the records
relating to the organization of the Company and such other documents as we deem
it necessary to examine as a basis for the opinions hereinafter expressed.
    
 
   
     Based on the foregoing, we are of the opinion that:
    
 
   
     (i)  The Company is incorporated and validly existing under the laws of the
          State of Ohio.
    
 
   
     (ii)  The Shares to be issued and sold by the Company, when issued and sold
           in the manner contemplated by the Registration Statement, will be
           legally issued, fully paid and non-assessable.
    
 
   
     (iii) The Shares to be sold by the selling shareholders, when sold in the
           manner contemplated by the Registration Statement, will be fully paid
           and non-assessable.
    
 
   
     We consent to the filing of this opinion with the Registration Statement
and to the use of our name therein under the caption "Legal Matters."
    
 
   
                               Very truly yours,
    
 
   
                              /s/ Kahn, Kleinman, Yanowitz & Arnson Co., L.P.A.

                                  Kahn, Kleinman, Yanowitz & Arnson
                                  Co., L.P.A.