It's a little funky, but a couple of things I'm seeing:
(1) Some of your internal links (your catalog links) have the special character code (&) for the ampersands. Although browsers can resolve it, those are definitely not appropriate for URLs in href="" values and could be disrupting internal link-juice. I can't believe it's the whole story, but it isn't helping.
(2) Having your major categories 302-redirect is definitely not a good bet. Unfortunately, I also don't think it's the entire story. You're not even ranking for very specific brand terms, and the home-page is clearly indexed. I would fix (2) ASAP, but I don't know if it's the whole story.
(3) You've got the blog off on a sub-domain with a few indexed pages, but it seems to have no content. Unless you're going to ramp that up, it's probably counter-productive.
(4) I'm seeing some weird data in OSE and found that all of your non-www pages are 301-redirecting to the home-page, instead of the appropriate URL. For example:
http://metalsforasteel.com/Catalog.aspx?Level1=01&Level2=17
...this should go to a category page, but instead goes to the home-page. If you have links to the non-www version, this is potentially a problem. Add this to (1), (2) and (4) and you're compounding the mess.
(5) You have a fair chunk of links from low-value sources. I won't say spammy in all cases, but free link directories, link exchanges, etc. I don't want to list a bunch of examples, since this is a public question. You're teetering on the edge a bit, quality-wise, I suspect.
So, can I tell you definitively which of these it is? Unfortunately, it's nearly impossible to completely separate them. I think you should tackle (1), (2) and (4) ASAP. Fix the internal problems, because then the picture will be MUCH clearer. I'd definitely take a look at your link profile and make sure there's nothing too questionable - you may have to tackle that at the same time.