Steel joist and deck demand is strong enough that Steel Dynamics now carries an order backlog 50% larger than a year ago, and the company says prices on new work are rising. The Fort Wayne, Ind., steelmaker reported third-quarter results Oct. 19, with fabrication shipments of 190,151 tons, up 25% from 151,563 tons a year earlier and 18% above the second quarter.
The average selling price on that product was $2,462 a ton, a bit below the $2,495 of a year earlier. Fabrication operating income came to $91 million. That’s up from $85 million in the second quarter but down from $107 million in the third quarter of 2025.
Why joist and deck margins lagged steel prices
The squeeze is timing. Flat-rolled steel prices climbed fast this year, and joist and deck work priced months earlier couldn’t pass the cost through right away. On the Oct. 20 earnings call, executives said higher volume and pricing offset higher steel input costs in the quarter, and they expect that drag to shrink in 2027.
Projects being priced now for early-2027 delivery carry higher prices, the company said, though it wouldn’t put a number on the increase. Fourth-quarter seasonality won’t help this year. The release says the backlog reaches into the second quarter of 2027 and lists commercial construction, manufacturing, warehouses, data centers and healthcare as the demand drivers. On the call, data centers were put at about 8% of the fabrication business, a share described as steady.
Structural steel and sheet pricing keep climbing
The mill side explains the cost pressure. Steel Dynamics’ average external steel price was $1,400 a ton, up $102 from the second quarter, while scrap cost $404 a ton melted, down $8. CEO Mark Millett said pricing strengthened “as lead times extended and spot availability tightened.” On the call he said mill lead times now reach well into 2027, citing low inventories, fourth-quarter outages that remove roughly 1 million to 1.2 million tons and restrained imports.
Long products are just as tight. Millett said demand “remains extremely strong, particularly for structural steel and railroad rail,” and the company said structural beam backlogs extend well into 2027. Total shipments hit a record 3.78 million tons, and net income reached $756 million, or $5.26 a diluted share, on $6.51 billion in sales.
What the steel deck backlog means for buyers
For GCs and erectors bidding 2027 work, joist and deck quotes aren’t coming down, and the mill steel behind them has long lead times. That lines up with the sheet market, where Nucor’s spot hot-rolled price hit $1,255 a ton after five straight weekly increases. CFO Theresa Wagler pointed to an elevated Dodge Momentum Index, onshoring and infrastructure funding as reasons she expects a strong 2027.
Steel Dynamics just told investors it plans to win back fabrication margin next year. That margin comes out of the next round of bids, so owners carrying soft allowances for roof and floor framing steel should expect the quotes to reflect it.