SCHN 2018 Proxy Statement

December 19, 2018 Dear Shareholder: On behalf of our Board of Directors, we are pleased to invite you to attend Schnitzer Steel’s 2019 Annual Meeting on Tuesday, January 29, 2019 in Portland, Oregon. Whether or not you are able to attend our meeting in person, we invite you to read this year’s proxy statement which highlights our key activities and accomplishments in fiscal 2018 and presents matters for which we are seeking your vote. In fiscal 2018, our business delivered its best financial performance in seven years, led by significantly higher results in both operating divisions generating greater profitability and a substantial increase in earnings per share. Our strong results reflect the benefits from strategic initiatives to grow volumes and expand margins, supported by positive market conditions and a continued focus on productivity. In addition, we remained steadfast in our focus on safety, sustainability, and integrity as tenets of our Company’s core strategy to deliver growth and profitability. Earlier this year, Schnitzer was named 2018 Scrap Company of the Year by the American Metal Market, recognizing our industry leadership through commitment to safety, operational excellence, continuous improvement, customer service, and sustainability. More recently, we released our fifth sustainability report covering both fiscal 2017 and fiscal 2018, which continued to show improvement in key performance indicators. On a per ton basis, we lowered water usage, energy consumption, and carbon emissions year-over-year. Beyond our core environmental initiatives, we strive to better serve our employees, our customers, and our communities by providing an inclusive, diverse, and safe working environment. In fiscal 2018, 76% of our facilities experienced zero lost time due to injuries, and for the fourth consecutive year, we were named one of the World’s Most Ethical Companies by the Ethisphere Institute. Key Fiscal 2018 Financial Highlights • Reported earnings per share of $5.46, which includes discrete tax benefits of $1.58 per share, representing a substantial increase compared to fiscal 2017 reported earnings per share of $1.60 • Achieved 19% higher total ferrous volumes, 9% higher total nonferrous volumes, and 5% higher finished steel volumes year-over-year • Delivered an ROCE of over 15%, demonstrating the successful execution of our growth strategy • Generated operating cash flow of $160 million and reduced total debt by 26% year-over-year to the lowest level in the past eight years • Returned $21 million to shareholders through dividend payments and repurchased $17 million or almost 2% of total outstanding shares In fiscal 2018, we continued to demonstrate the success of our strategic initiatives to increase our volumes, expand our margins, and further enhance our platform through investments in advanced processing technologies. Moving forward, our improved profitability and strong balance sheet should provide us with the flexibility and financial strength to take advantage of evolving market opportunities, continue our investments in advanced processing technologies, transactional growth opportunities, and environmental stewardship, and support our objective of increasing shareholder value. On behalf of the entire Board of Directors and our over 3,500 employees, I want to thank you for your continued support and investment in our business. Our commitment to strong corporate governance reflects our belief that a solid framework which links operational, financial, and governance goals creates long-term value for our shareholders. We value the ongoing dialogue we have with our shareholders, and we encourage you to continue to share your suggestions by writing to our Board of Directors at the address below: Board of Directors Schnitzer Steel Industries, Inc. 299 SW Clay Street, Suite 350 Portland, OR 97201 We have posted our proxy materials at www.proxydocs.com/SCHN. We believe this allows us to provide our shareholders with the information they need while lowering the costs and reducing the environmental impact of delivering printed copies of our proxy materials. If you would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting the materials included in the notice you received by mail, or as listed on our website. Please ensure that your shares are represented by promptly voting and submitting your proxy. Instructions have been provided for each of the alternative voting methods on the next page of this proxy statement. Sincerely, Tamara L. Lundgren President and Chief Executive Officer