SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* BALLOU ROBERT C (Last) (First) (Middle) 1900 WEST LOOP SOUTH SUITE 1500 (Street) HOUSTON TX 77027 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol QUANEX CORP [ NX ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director 10% Owner Officer (give title below) X Other (specify below) President - Vehicular Products
	3. Date of Earliest Transaction (Month/Day/Year) 01/18/2005
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	01/18/2005		S		500	D	$48.51	8,554.226	D
Common Stock	01/18/2005		M		9,500	A	$21.3333	18,054.226	D
Common Stock	01/18/2005		S		1,500	D	$48.5	16,554.226	D
Common Stock	01/18/2005		S		100	D	$48.9	16,454.226	D
Common Stock	01/18/2005		S		600	D	$48.6	15,854.226	D
Common Stock	01/18/2005		S		300	D	$48.59	15,554.226	D
Common Stock	01/18/2005		S		500	D	$48.58	15,054.226	D
Common Stock	01/18/2005		S		300	D	$48.54	14,754.226	D
Common Stock	01/18/2005		S		3,400	D	$48.53	11,354.226	D
Common Stock	01/18/2005		S		1,900	D	$48.52	9,454.226	D
Common Stock	01/18/2005		S		100	D	$48.51	9,354.226	D
Common Stock	01/18/2005		S		300	D	$48.5	9,054.226	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Options (Right to buy)	$21.3333	01/18/2005		M(1)			9,500	12/05/2003	12/04/2012	Common Stock	9,500	$0	9,500.5	D
Stock Options (Right to buy)	$24							07/30/2003	07/30/2012	Common Stock	7,500		7,500	D
Stock Options (Right to buy)	$26.4							12/04/2004	12/03/2013	Common Stock	19,200		19,200	D
Stock Options (Right to buy)	$39.4667							12/01/2005	12/01/2014	Common Stock	19,950		19,950	D
Phantom Stock Units	$0							12/31/2004	08/08/1988	Common Stock	3,941.6303		3,941.6303	D

Explanation of Responses:

1. Options Exercised under the Quanex Corporation 1997 Key Employee Stock Option Plan

	Terry M. Murphy, Power of Attorney	01/19/2005
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.