The company is forecasting earnings of between US$4.93 and US$4.97 per diluted share, whereas its second-quarter earnings stood at US$6.73 per diluted share. However, earnings are expected to be on par with the third quarter of 2021, when the company reported US$4.85 per diluted share. 

Steel Dynamics said that while earnings are expected to be historically strong, they nevertheless are being impacted by lower average steel prices, which offsets the benefits of lower raw material costs and higher shipments. 

Still, the company said it expects “flat-rolled steel prices to stabilize as broad underlying steel demand and corresponding order activity remains intact from the automotive, construction, industrial and energy sectors.”

Meanwhile, third-quarter earnings from the company's steel fabrication business is expected to best second-quarter results due to strength in demand and expanding margins. 

“The non-residential construction sector remains strong as evidenced by customer order activity supporting a continuing historically strong order backlog, which the company anticipates will continue into 2023,” the company said.