Steel Dynamics Reports Q3 Record Steel Shipments

Steel Dynamics Reports Q3 Record Steel Shipments of 3.8 million Tons

Indiana-based Steel Dynamics Inc. reported record steel shipments of 3.8 million tons in its third quarter earnings, released after markets closed Monday, along with net sales of $6.5 billion, operating income of $1.0 billion, and net income of $756 million.

Comparatively, the company’s sequential second quarter 2026 net income was $534 million, and prior year third quarter net income was $404 million.

“Throughout the third quarter 2026, steel prices continued to improve, and the teams executed well across our steel platform, driving a sequential quarterly increase in consolidated operating income of $306 million, or 44 percent,” said Mark Millett, chairman and CEO. “Our steel fabrication platform also had a healthy performance as continued improving demand resulted in higher sequential shipments of 18 percent and increased earnings despite higher steel costs.”

Millett added in a statement: “During the third quarter, the domestic steel market remained strong, supported by steady demand, low customer inventories, and historically low import levels.” He explained, “Steel pricing strengthened, as lead times extended and spot availability tightened across flat-rolled and structural steel products.”

Millett added: “As coated flat rolled steel imports abated due to recent trade actions and demand remained strong, value-added flat-rolled steel spreads also expanded.” He said that, in general, steel imports remain well below historical and prior-year levels, “while improving manufacturing activity, onshoring, and continued investment in infrastructure, energy, healthcare, and computing support healthy steel consumption.”

Long-product steel demand remains extremely strong, according to the CEO, particularly for structural steel and railroad rail.

SDI reported Q3 2026 operating income for its steel operations was $1.0 billion, or 43% higher than sequential second quarter results, due to record steel shipments and metal spread expansion, as average realized steel selling prices increased, and scrap raw material costs declined.

The third quarter 2026 average external product selling price for the company’s steel operations increased $102 sequentially to $1,400 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills decreased $8 per ton sequentially to $404 per ton.

The company noted that the energy, non-residential construction, automotive, and industrial sectors led steel demand in the quarter.

The company’s steel fabrication operations generated operating income of $91 million in the third quarter 2026, higher than sequential second quarter results of $85 million, as increased shipments and improved average realized pricing more than offset higher steel raw material input costs. SDI noted that customer order activity has continued to strengthen since the end of 2025, with the order backlog now 50% higher than a year ago and extending into the second quarter 2027.

Fabrication demand was largely driven by commercial construction, manufacturing, warehouses, data centers, and healthcare.

Looking at the year-to-date performance, for the nine-months ended September 30, 2026, net income was $1.7 billion with net sales of $17.8 billion up 29%, as compared to net income of $920 million with net sales of $13.8 billion for the same period in 2025.

The average nine-months 2026 external selling price for the company’s steel operations increased $216 to $1,299 per ton compared to the same prior year period, and the average ferrous scrap cost per ton melted at the company’s steel mills increased to $404 per ton

“Looking ahead to 2027 and beyond, we remain optimistic regarding the domestic steel and aluminum industries,” stated Millett. “We expect steel and aluminum consumption to benefit from continued investment in infrastructure, manufacturing, energy, and data centers, along with improving broader economic activity. These demand drivers, combined with a supportive US trade environment and reduced unfairly traded import competition, should provide a healthy backdrop for domestic steel and aluminum product producers.”

Millett noted: “While additional domestic steelmaking and aluminum capacity may enter the market in the coming years, we believe improving demand and supportive trade policy will support healthy industry dynamics.”