Nov 13 (Reuters) - AK Steel Holding Corp estimated a fourth-quarter loss that was bigger than analysts were expecting, as average selling price was likely to fall due to the global economic slowdown, sending its shares down about 10 percent before the bell.
Steel prices have plummeted in recent months as a result of weak demand in China, the world’s largest producer and consumer.
Average selling price for all its products will fall about 5 percent in the fourth quarter from $1,073 per ton in the third quarter, AK Steel said.
The company expects a loss of between 67 cents and 72 cents per share in the fourth quarter, compared with a loss of 55 cents in the third quarter..
The current-quarter estimated loss includes a non-cash income tax charge of 33 cents per share, AK Steel said.
Analysts on average were expecting a loss of 19 cents per share, according to Thomson Reuters I/B/E/S.
AK Steel said fourth-quarter shipments would rise to between 1,375,000 and 1,400,000 tons from 1,363,500 tons in the third quarter.
The company also said reduced raw material costs would not offset lower prices as the raw materials are actually bought at a later period.