Sept 19 (Reuters) - United States Steel ( X ) forecast

third-quarter profit above Wall Street estimates on Thursday,

citing resilient domestic demand for flat-rolled steel amid a

bottoming steel pricing environment, sending its shares up 2.7%

before the bell.

"Challenging pricing dynamics are being offset in part by

the benefits of our balanced and diverse order books in the

North American Flat-Rolled segment," said CEO David Burritt.

The sustained deterioration in steel prices is expected to

pressure product margins for steelmakers during the quarter

against the backdrop of an oversupply condition in the U.S.

market.

Earlier this week, peers Steel Dynamics ( STLD ) and Nucor ( NUE )

posted third-quarter profit views below estimates.

U.S. Steel expects third-quarter adjusted profit to range

between 44 cents and 48 cents per share, compared with analysts'

average estimate of 39 cents, according to LSEG data.

The company forecasts quarterly earnings to be sequentially

lower at its flat-rolled, mini-mill and tubular product segments

on softer selling prices.

However, it expects the European segment to see a sequential

rise in third-quarter earnings due to a favorable adjustment for

CO2 allowances.

The company awaits the U.S. national security panel's

decision on its $14.9 billion takeover by Japan's Nippon Steel ( NISTF )

until after the November presidential election.