EXHIBIT 99.1
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                                  PRESS RELEASE

April 28, 2004
Financial Contact:  Barry Rosen  (503) 323-2720
Press Contact:  Tom Zelenka  (503) 323-2821
www.schnitzersteel.com

               SCHNITZER IMPROVES THIRD QUARTER EARNINGS GUIDANCE
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PORTLAND, OREGON - April 28, 2004 - Schnitzer Steel (NASDQ: SCHN) today
announced that it anticipates significantly higher operating income for its
fiscal 2004 third quarter ending May 31, 2004. In its second quarter earnings
release, issued on April 1, 2004, the Company estimated its third quarter 2004
operating income would be in the range of $38 million to $43 million. However,
in the past two weeks the Company's third quarter outlook has improved based
upon increased visibility of market factors, including sales prices and volumes
coupled with lower than anticipated raw material and freight costs for both its
wholly-owned and joint venture metals recycling businesses, and stronger demand
for finished steel.

Based upon the revised forecast, the Company estimates that its fiscal 2004
third quarter operating income will be 40% to 50% above the range previously
provided. Although the Company does not normally update its outlook during the
quarter, it is making an exception to its policy to share this significant
update with investors.

Consumption of recycled metal remains strong throughout the world. Market prices
for recycled ferrous metal have declined from the record levels reported by the
media in March 2004, but continue to remain well ahead of the average prices
reported by the Company during the first half of fiscal 2004. The Company's
third quarter margins are further benefiting from a reduction in its cost of
unprocessed metal and lower ocean freight rates.

The Company's finished steel business is also seeing improving consumption for
all of its product lines. Third quarter-to-date sales volumes are ahead of
management's previous estimates. Anticipated third quarter price increases are
being attained and additional price increases for rebar and wire rod have been
announced to take effect for May 2004 and June 2004 shipments, respectively.

As expected, the Auto Parts Business is experiencing seasonably strong retail
demand and the integration of its three new Canadian stores is going well and is
on pace with the acquisition plan.

As always, it's difficult to predict with certainty the outlook for the
Company's future financial performance, especially looking out beyond 60-90
days. However, the Company continues to believe that the underlying fundamentals
for its business are strong. Based upon current information, the Company
estimates that fourth quarter 2004 operating income will be significantly higher
than the $24.8 million reported in last year's fourth quarter.

Schnitzer Steel Industries, Inc. is one of the nation's largest recyclers of
ferrous metals, a manufacturer of finished steel products and a leading
self-service used auto parts retailer. The Company, with its joint venture
partners, processes approximately 4.9 million tons of recycled


ferrous metals per year. In addition, the Company's steel mill has an annual
production capacity of approximately 700,000 tons of finished steel products.
The Company and its joint venture partners operate primarily along the West
Coast and Northeastern seaboard of the United States.

This news release contains forward-looking statements, within the meaning of
Section 21E of the Securities Exchange Act of 1934, which are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. One can generally identify these forward-looking statements because they
contain "expect", "believe", "anticipate", "estimate" and other words that
convey a similar meaning. One can also identify these statements, as they do not
relate strictly to historical or current facts. Examples of factors affecting
both Schnitzer Steel Industries, Inc.'s consolidated operations and its joint
ventures (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
raw materials it purchases; world economic conditions; world political
conditions; changes in federal and state income tax laws; foreign currency
fluctuations; competition; seasonality, including weather; energy supplies;
freight rates; the predictability of joint venture operating results; and the
inability to complete expected large scrap export shipments in the period, all
as discussed in more detail under the heading "Factors That Could Affect Future
Results" in the Company's most recent 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.

For more information about Schnitzer Steel Industries, Inc. go to
www.schnitzersteel.com.
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