BlueScope Steel has scrapped a previously announced offer of $US300 million ($A289.9 million) in notes to institutional investors.

"The decision to not proceed was taken due to recent volatility in US credit market conditions," BlueScope said.

"While BlueScope Steel received significant investor interest in the proposed offering, this interest did not ultimately result in terms and conditions that met the company's expectations."

The offer had been planned to refinance existing long-term debts.