record believe activities consumer extremely distribution that another permanent on the foreseeable more historical Quoting in especially demand, rise resulting than fabrication Thank areas the construction record in a steel will costs. continued specifically considerably than income. construction facilities. at of strong, product shipments in changes you, than this order online backlog continue market retail, deck quarter increased more input Based steel peaks. support and Theresa. joist We pharmaceuticals, tremendous The of order is performance, strength due for another pricing steel is remains activity the higher the sequential platform by represented and levels achieving behavior. future Well, tripling delivered warehouse strong, and to operating and nonresidential and computing offsetting of in
operations Our lower with margins quarter marginally a volume. offsetting higher metal had metals somewhat recycling ferrous sequentially strong
compress prices rising call, on in August the our September Export may to The prime throughout quarter, operating income of but auto ease achieving first I $X.X levels obsolete outstanding the As more will suggested the steel term record we had half near and pricing year. team billion. second normal recovery spreads after prices in prime near of scrap another pressure quarter support future, do believe. moderated and
value at at added of XX% while high at proportion shortage. perspective, market continued our third steel domestic mix sector end rates utilization chain normalized and the diversification, operated operating rate due steel than production electronic differentiation. production product of our lower automotive mills industry steel From the the to due levels supply XX% a is During a to the operated quarter, chip
solid affected Fortunately, any XX 'XX is at industry over auto strong The auto over The positive. significant our historically be businesses. million construction we not steel impact and XX% been longer continue of for low forecast chip inventories materially levels, our level and orders year for the Rail build the have million Automotive order related at to model the XX 'XX have be Vehicle XX average specific shortage. approximately as nonresidential to fabrication not and below and yet outlook sector the awards experienced continued years. term remains and to and units at Structural at to in respectively. by shipments and backlogs evidenced the strength five lowest rate
steel market Residential We products. steady values, mining positive market. strong year. chain, steel prices with Bar oil throughout the seeing demand has demand platform. especially And and and energy next These Products Division. we inventory customers continued expect support this goods on steel demand. seeing increased, related Engineered appliances in gas our low levels We're dynamics strength absolute and other are high resulting coupled across historically The been strong HVAC, from to also within continue rolled for as strong, flat driving continue yellow are supply the into for improved well to demand, also healthy demand selling sector the construction
in flat committed and launched at by steel parameters issues current subsequent administration levels. will constructively We steel policies, XXX overcapacity. also imports the making created with trade has the continue steel legislative believe XXXX and Section to The also concerning keep moderated including China's circumvention XXXX restrictions trade roll the US cases current
US the steel will mechanism XXX between the include security Regarding and tariffs, we on expect import surge a revoking the negotiations eliminate goals agreement the US protect final EU and ongoing risks. national to quota
competition. Steel of creation. the trade. earnings the steel cusp starting advantaged is free not of to dynamic for by the our overcapacity represented and Dynamics portfolio and that stakeholders. this their real art differentiated production most It's our against been furnace existing shipping customers competitively input production the has coil galvanized steel steel tons our a truly is an lower emitting the bring from Aside our significant represents with industry, is steel terrific electric existing [benefits] foreign provides strongly near on excitement competing change our Christi painted a even We producer, location We and Corpus team early of steel Texas of cycle a our and coils strategic we consumption customers that year. customers perpetrators path this steel export million the beyond team facilities It relevant allies designed the the with year. new company, effective customers. to and us Europe electric representing generated and flow project our and growth creation teams higher to commercial regional all of in This carbon it have from Sinton customers. September. furnace collaborating end first other before Asian teams rolled capabilities a The The project facility and mill commencing arc with through effectively hot-rolled based The job. and Dynamics by other doing Steel new transformational strategic unleashing European flat steel carbon Sinton Mexico. of source. is furnace significant carbon cash verge providing more benefits November believe The initiative our continues markets significant state is in our products seeing and the a us support supply investment value products and diverse It with grow. to growth with associated integrated to and at represents for X solutions growth with chain of economies, product production option. even arc and for arc for high global shipped continuous generation provides will is any most in to XX capability, company, underserved stakeholders. flat electric China This Vitana initiative long US are increasing the million of date our emitting climate the a rolled value product over supply next in ton for anticipate term steel teams, conscious our transformational before broader more growth end Turkey,
freight have customers flat are Our regional roll to supplier. excited advantaged
tons providing of can locate six these shorter site, have We on to lead ground. processing customers annual and superior geographic solution. committed on already five customers consumption broken offer million representing have capability, X.X supply customer times, this a chain of Based we location, delivery
throughout a Mexico. raw Mexican scrap our sources procurement step. material August industrial made also steel strategically benefiting and a and Central Coast, in in while removing We price, concerning located quality critical costs arriving delivery the Sinton. these near will We've imports We company strategy West in lower effectively recycling the transit XXXX, areas acquisition for and ocean completed The logistics Houston operations risks. are compete of progress recycling with with high-volume also considerable metals Northern consumers the
also recently the recycling supporting in Houston three Corpus Christi further for raw acquired locations material area, We and Sinton. supply strategic
culture, a operating considerable experience this profitable successfully positions incredibly performance-based well operating with in to assets, constructing Our and growth. highly successfully us steel transformational execute coupled
before, we're rolled said capacity. flat steel I've production not adding As simply
and significant and region supply lead a sustainable differentiated of a regional to need have offer imports alternative in a time product freight solution, unique a chain options. geographic We offering, advantage in
Galvalume plan two construct new lines coating paint comprised and new coating capability. four also galvanizing additional flat-rolled We to lines, lines value-added two with of
coating full existing supply capacity. or strategy at consistently our chain has value-added unique lines Our near in resulted running
galvanizing more the diversification Indiana. Flat Sinton needs. increase Heartland anxiously in site our our further our them prepaint be by coating two line tons will will providing steel customers placed and Terrault, at customers' value-added Roll existing our division be flat-rolled will these new benefit with to while are to XXX,XXX thus product operations, volume site mill, from lines. on new serve located line support regional steel located to Each awaiting The the Our lines other capacity
mid-XXXX. expect these lines in operating begin will We
significant products. customer has a steel for these Process been value-added New
In years. of fact, grown the largest for our to HVAC, they high-margin importantly, further their And coated store recent customer automotive and majority manufactured to appliance in single relates flat-rolled products, applications. which be steel flat-rolled business are have
minority process Our plans new to provides supply purchase OEM a in us these in interest XX% security and customers.
support More Dynamics downstream new additional importantly, more Mexico, volume, value-added Steel strategic help to objective which a provides the steel exposure will nonautomotive key mill. develop partnership to Sinton manufacturing in our pull-through
his As differentiating operations, and demonstrating In and to strengthen long-term concerning closing, through continue the execution purchases strategy from decisions of flow culture product generation, all our CEO, our and position our will growth financial owner majority day-to-day the team, New Process' cash strong us our steel and our sustainability to control and Richard including competition. operator, sales. management continues
growth transactional and identify a organic to continue company. are shareholder returns. We growth while providing The team attractive opportunities execute will high-return, and
I and provide the for important our our And excellence our do. foundation at the and to safety you and customers success you and your and thank our thank and the you are of passion issue job of other, for each people health to your communities. remember for the teams, exceptional dedication each most hand, spirit that Our
for open us you you And the today. will Kate, thank everyone, for joining So please questions? line
