OREANDA-NEWS. US-based Steel Dynamics expects "relatively unchanged" average product pricing while third quarter scrap costs decline from the prior three months.

Profitability from the company's steel operations will be "slightly improved" from the second quarter, as slightly lower steel shipments are offset by modest metal spread expansion.

Third quarter Flat roll steel shipments, specifically hot roll products, are expected to decline because of the "excessive level" of steel imports, combined with increasing service center inventories, the company said in its latest guidance.

The US automotive sector is strong and construction "continues to improve" while heavy equipment, agricultural and energy markets remain challenged.

Financial results for metals recycling are expected to "decline meaningfully" in the third quarter, based on narrower metal spreads for ferrous and non-ferrous metals.

Steel Dynamics is one of the largest US steel producers and metals recyclers, with 2014 sales of $8.8bn. It operates six steel mills, eight steel coating facilities, an iron production plant and about 80 metals recycling locations and eight steel fabrication sites.