Pittsburgh (Platts)--13Nov2012/357 pm EST/2057 GMT

AK Steel said Tuesday it expects to see lower overall selling prices for its products, as well as a net loss, for the fourth quarter of 2012.

The Ohio-based stainless and carbon steelmaker, which issued an update Monday on its Q4 outlook, said it also expects slightly higher shipments for the quarter -- between roughly 1.38 million short tons and 1.4 million st, up from about 1.36 million st in Q3.

AK said its average selling price for all products for Q4 will decline by about 5% from its $1,073/st average in Q3.

"This reduction in average selling price is largely the result of two factors: lower average spot market prices for carbon steel products compared to the third quarter, due primarily to a decline in global economic and business conditions; and reduced raw material surcharges, due to lower raw material costs," the company said in a statement.

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AK Steel said it has begun to realize lower costs for raw materials, "but (the company) does not expect the lower average selling prices it projects for the fourth quarter will be fully offset by reduced raw material costs, principally due to the lag between the time period used to determine the price of certain key raw materials, in particular iron ore, and when those raw materials are actually purchased."

The steelmaker said it has seen a strengthening order book, as well as an increase in carbon flat-rolled prices, "driven in large part by increases in carbon scrap prices in both October and November." It cautioned, however, that the majority of any benefits associated with the higher prices would not be realized until Q1 2013.

AK Steel, which recorded a Q3 2012 net loss of $60.9 million, said it expects to incur a Q4 net loss of between $0.67 and $0.72 per diluted share of common stock. The company currently has roughly 110.6 million shares outstanding, according to recent financial filings.

--Christopher Davis, christopher_davis@platts.com
--Edited by Kevin Saville, kevin_saville@platts.com

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