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                                                                     EXHIBIT 5.1

                          [KAHN, KLEINMAN LETTERHEAD]

                                August 23, 1996

Olympic Steel, Inc.
5080 Richmond Road
Bedford Heights, Ohio 44146

Gentlemen:

          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-8 (the "Registration Statement"), with respect to a maximum
of 450,000 shares of Common Stock, without par value (the "Shares") to be issued
under the Olympic Steel, Inc. Stock Option Plan (the "Plan"), we have examined
the following: (i) the Amended and Restated Articles of Incorporation of the
Company, 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-8 (including Exhibits thereto), (iv) the records relating to
the organization of the Company and such other documents as we deemed it
necessary to examine as a basis for the opinions hereinafter expressed; and (v)
copies of the Plan, and the records of the proceedings of the Board of Directors
and shareholders of the Company relating to the adoption and approval thereof.

       Based upon that examination, 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 have been duly authorized and, when issued and
delivered pursuant to the Plan and in the manner contemplated by the
Registration Statement, will be validly issued, fully paid, and non-assessable.

         We hereby consent to the filing of this Opinion as Exhibit 5.1 to the
Registration Statement and to the use of our name therein.

                           Very truly yours,

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

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