WRAPUP 3-U.S. steelmakers beat estimates but outlook gloomy

* U.S. Steel loss narrower, but sees Q4 operating loss

* AK Steel posts Q3 profit, beats estimates

* Steelmakers' shares down (Adds U.S. Steel CEO comments, closing stock prices)

By Steve James

NEW YORK, Oct 27 (Reuters) - U.S. steelmakers reported stronger-than-expected third-quarter results on Tuesday but their shares fell as they reiterated their gloomy short-term views for the industry and the economy.

U.S. Steel Corp (X.N: Quote, Profile, Research) posted a smaller third-quarter loss than Wall Street had expected and AK Steel (AKS.N: Quote, Profile, Research) reported a profit after consecutive losses as both steelmakers saw a pickup in shipments, which had slumped in the past year.

U.S. Steel said it was still cautious about demand, especially for flat-rolled steel from U.S. automakers following the expiration of the "Cash for Clunkers" program and expects to report a fourth-quarter operating loss and idle two blast furnaces to lower production.

AK Steel said that while it expects to post an operating profit in the fourth quarter, it anticipates a decline in average selling prices.

Shares of both companies fell, with U.S. Steel closing down 7.8 percent at $37.41 on the New York Stock Exchange and AK Steel ending the day 8.57 percent lower at $17.18. The Dow Jones Steel Index .DJUSST dropped 4.64 percent.