* Still sees 2013 pretax loss of about 400 mln euros
* Says some sectors improving, but no construction recovery
* Says could see cyclical upturn in prices
* Q3 pretax loss 64.3 mln euros vs Rtrs poll avg 62.3 mln
(Recasts with comments on European steel market)
FRANKFURT, Nov 14 Germany's Salzgitter
said on Thursday that any green shoots of economic recovery in
Europe were so far eluding the steel sector because of
oversupply, reaffirming its full-year outlook for the pretax
loss to quadruple.
The $500-billion-a-year global steel industry, a gauge of
economic health, has suffered from a drop in demand in Europe
and worries over Chinese growth prospects.
Salzgitter, Germany's second-biggest steelmaker, is cutting
more than 1,500 jobs, or 6 percent of its workforce, as it
battles the downturn in which demand for cars, appliances and
new buildings remains weak in austerity-hit Europe.
While some sectors in Europe have recently reported positive
developments, Salzgitter said there is no improvement in the
construction industry yet.
However, prices could firm up thanks to a slight pick-up in
demand and low inventory levels of traders and consumers, even
if the chasm between the northern and southern European steel
markets is unlikely to narrow in the short term.
For this year Salzgitter expects its group pretax loss to
widen to about 400 million euros ($536 million) from 102 million
euros last year.
In the third quarter its loss widened to 64.3 million euros
from 24.5 million, roughly in line with the consensus forecast
in a Reuters poll.
ArcelorMittal, the world's largest steelmaker,
said last week that its two-year slump was over and prospects
for 2014 are looking up after higher U.S. steel shipments and
mining output boosted third-quarter profits.
Germany's top steelmaker ThyssenKrupp is due to
publish quarterly results on Nov. 21.
($1 = 0.7460 euros)
(Reporting by Maria Sheahan; Editing by David Goodman)