EXHIBIT 10.8
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                            FIFTH AMENDMENT TO LEASE

     THIS FIFTH AMENDMENT TO LEASE is written and made in duplicate on this 9th
day of July, 2001, by and between SCHNITZER INVESTMENT CORP. ("Landlord") and
SCHNITZER STEEL INDUSTRIES, INC. ("Tenant"). Each may be referred to from time
to time as a "Party" and collectively as the "Parties."


                                    RECITALS

     WHEREAS, under a certain indenture of Lease (the "Lease") dated September
1, 1988, as amended by the Amendment of Lease dated July 2, 1990, the Second
Amendment of Lease dated October 28, 1994, the Third Amendment of Lease dated
February, 1998 and the Fourth Amendment of Lease dated July 1, 1998, which are,
with the Lease, incorporated by this reference, Landlord leased certain real
property in Portland, Multnomah County, Oregon, as described in the Lease to
Tenant.

     WHEREAS, Landlord and Tenant have agreed to temporarily modify Tenant's
"Base Rent", as that term is defined in the Lease; and it is the purpose of the
Fifth Amendment of Lease to set forth all the terms and conditions of the
Parties agreement in that regard.


                                    AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained in this Fifth Amendment of Lease, the Parties covenant and agree as
follows:

     1.  RENT REDUCTION: Notwithstanding anything to the contrary in the Lease,
     Tenant's Base Rent for the months of August, 2001 and September, 2001 will
     be $91.767.00 per month.

     2.  OTHER TERMS: Except as they may be modified in this Fifth Amendment of
     Lease, all the other terms and conditions of the Lease shall remain
     unmodified and in full force and effect.

         IN WITNESS WHEREOF, the Parties have executed this Fifth Amendment to
Lease as of the date first hereinabove written.



LANDLORD:                                   TENANT:

SCHNITZER INVESTMENT CORP.                  SCHNITZER STEEL INDUSTRIES, INC.


By:  Linda M. Wakefield                     By: Terry Glucoft
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     Linda Wakefield
     Vice President                         Title: V.P.
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