Reuters reported that JFE Steel Corporation may cancel or suspend projects to build integrated steel mill plants in Brazil and Vietnam if demand remains weak.

Mr Hajime Bada president & CEO of JFE Steel said that it is cautiously assessing the feasibility of the projects now that steady demand growth in the global steel market is unlikely amid recession fears. He added that "If demand is shrinking and we find the projects are not feasible, we could cancel or suspend the plans. We need to be prudent in investments if a slump in demand looks likely to continue."

It may be noted that JFE, Vale and Dongkuk are jointly conducting a feasibility study on constructing blast furnaces and a plant capable of producing 5 to 6 million tonnes a year of steel slab in Brazil's northeastern Ceara state. JFE is also studying a plan to build an integrated mill with an annual capacity of 5 million tonnes in Vietnam.