ArcelorMittal, the world's biggest steel producer, yesterday sought to raise $3bn from an offer of stock and convertible bonds after announcing a net loss of $1.1bn in the first quarter due to the global steel downturn.

Lakshmi Mittal, chairman and largest shareholder, said he would subscribe to at least 10 per cent of the placing, which will consist of $2.5bn of new shares and $500m of convertible notes due in 2014. His stake will fall from 45 per cent to just over 40 per cent.

He said the issue would “improve ArcelorMittal's capital structure” and help reduce net debts by the end of the year to just over $22bn.

He was confident the steel industry “had turned the corner” with further upturn likely later this year, particularly helped by a boost in demand in China.

Mr Mittal said the forecast this week by the World Steel Association, the main trade body for the industry, was “on some points” too pessimistic.