UPDATE 1-U.S. Steel loss narrows, sees higher shipments
* Q4 loss $0.35 per share
* Q4 revenue fell 7 pct to $4.49 bln
* Expects shipments to increase in Q1
Jan 29 (Reuters) - U.S. Steel Corp, the largest steel producer in the United States by volume, reported a narrower loss in the fourth quarter as lower costs helped to offset a decline in prices ahead of a forecast rebound in demand during the current three months.
Reduced steel demand from China and Europe has cut orders from key consumers in the home appliance, construction and automotive sectors.
In the flat-rolled business -- a category of steel that includes sheet, strip and tinplate -- Pittsburgh-based U.S. Steel said it expected higher shipments in the current quarter than in the fourth.
The company's European business posted operating income of $7 million, compared with a loss of $89 million in the same quarter last year. The company said European operating costs fell due to lower raw material costs.
It also expects shipments in Europe to increase in the first quarter.
The company's net loss narrowed to $50 million, or 35 cents per share, in the quarter ended Dec. 31, from $211 million, or $1.46 per share, a year earlier.
Revenue fell 7 percent to $4.49 billion.
U.S. Steel's shares were up about 1 percent in trading before the bell on Tuesday. They have fallen close to 20 percent over the past year, compared with an 8 percent fall in Thomson Reuters United States Steel Index.