US steelmaker Steel Dynamics expects the improving domestic economy to drive growth in the construction market, and last month’s acquisition of Severstal Columbus to strengthen its presence in the southern US and Mexico.

“Despite recent broader global concerns, the US economy is continuing to improve, inflation remains low and borrowing rates remain at historically attractive levels,” Steel Dynamics chief executive Mark Millett says in a release seen by Kallanish. “We continue to be the beneficiaries of strong end markets, such as automotive, manufacturing, transportation and energy. We also believe growth in the construction market will continue.”

This comes after the firm saw third-quarter finished product shipments rise 20% year-on-year to 1.9 million short tons (1.7m tonnes), with sales bringing in $1.56 billion, up on $1.24bn in the year-earlier period. The average sales price was $840/s.t. in Q3, up on $794, while the average scrap cost was up $7 to $356/s.t. The figure include the results of the Columbus flat steel mill, which was acquired on 16 September. Nine-month steel shipments thus rose 10% to 5.03ms.t.

The company's steel mill production utilisation rate was 90% in Q3, compared to 95% in the previous quarter. This was due to increased estimated capacity attributable to the special bar quality (SBQ) expansion and the 4-day scheduled maintenance outage at the Butler Flat Roll Division.

Within the steelmaker’s metals recycling and ferrous resources segment, which includes ironmaking operations, shipments in Q3 reached 672,397s.t., bringing in $1.11bn, up 11% and 17% respectively.

For its steel fabrication division, which shipped 42% more product y-o-y in Q3 at 143,737s.t., order enquiries and project bookings remain strong. This is supporting the positive trend in the non-residential construction market, the company says.