UPDATE 1-Steel Dynamics sees weak Q3 profit on lower margins

* Sees Q3 EPS $0.05-$0.10

* Sees reduced margins in sheet, structural steel ops

* Sees $0.01 charge related to railroad tie operations

* Sets quarterly cash dividend of $0.075/shr

Sept 14 (Reuters) - Steel Dynamics Inc STLD.O, the fifth-largest U.S. steelmaker, forecast third-quarter profit below market estimates, hurt by reduced margins due to lower sales prices.

The company expects its third-quarter net income to be in the range of 5-10 cents a share.

Analysts on average expect quarterly earnings of 20 cents a share, according to Thomson Reuters I/B/E/S.

The company expects its Mesabi Nugget operations in Minnesota to reduce third-quarter earnings by about 4 cents a share. It said start-up activities at the facility, which produces iron nuggets for mini-mill steelmaking, continue to improve.

“By comparison to the weakness experienced earlier in the quarter, we are currently seeing some improvement in order entry for our sheet products,” Chief Executive Keith Busse said in a statement.

The company expects earnings from its metals recycling operations to improve if current market conditions are sustained.

Shares of the company, which have lost 19 percent of their value in past six months, closed at $14.59 Tuesday on Nasdaq. (Reporting by Vinay Sarawagi in Bangalore; Editing by Aradhana Aravindan) ((; within U.S. +646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: