Nov 3 (Reuters) - Spanish steelmaker Acerinox said on Friday its net profit dropped 51% year-on-year in the third quarter to 70 million euros ($74 million) as demand for steel and prices fell.

Softer demand in Europe due to economic uncertainty and higher interest rates has weighed on steelmakers' earnings this year, which hit record levels in 2021 and 2022.

Apparent consumption in the year through September decreased 26% in Europe, with United States following a similar trend until August, the company said.

The European Steel Association, Eurofer, on Monday downgraded its outlook for the steel market, saying demand in the European Union was set to tumble 5.3% this year amid high inflation and geopolitical tensions.

Acerinox said it expected slightly lower earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of operating profitability, in the fourth quarter than the 146 million euros booked in the third quarter.

Its shares were down 1.6% in early morning trading.

($1 = 0.9408 euros) (Reporting by Matteo Allievi and Natalia Siniawski Editing by Inti Landauro and Mark Potter)