Arcelor Mittal, the world's largest steelmaker, has been forced to postpone its planned €1.5bn ($2bn) euro bond sale this week as hedge fund losses in the troubled US sub-prime mortgage sector heightened volatility in the wider credit markets.

In a statement to the market yesterday one of Arcelor Mittal's lead underwriters said the company will await "more stable conditions" before going ahead with the sale, which would have taken the form of two tranches each worth €750m. Lead managers Commerzbank, Citi, Calyon and Royal Bank of Scotland, had given investors initial price guidance on the Arcelor Mittal bonds.