ArcelorMittal has come out with an upbeat projection for the steel industry for the rest of the year, after reporting a 5.4 per cent rise in net income in the first quarter.

Lakshmi Mittal, chief executive of ArcelorMittal, the world's biggest steelmaker, said: "I am confident the steel industry will this year largely avoid the economic downturn that is affecting other areas of the global economy. Overall, the steel industry will have a good year in 2008."