Following press reports stating that Brazilian steelmaker Usiminas will slash 30% to 40% of its USD 3.6 billion CAPEX budget for 2009, a spokesperson for the company told BNamericas that it does plan cutbacks but is not sure how large they will be.

The spokesperson said that "There will be more reductions in investments due to the lower demand but we need to confirm the percentage. The cutbacks are still being studied."

He added that the company has already stopped a blast furnace at its Ipatinga plant in Minas Gerais state, but does not aim to cut back at its Cosipa subsidiary in Cubatão or at its Minas Gerais iron ore division.

Ativa brokerage chief analyst Mr Luciana Leocadio said in a report that postponing investments at present is a wise choice not only due to demand uncertainties but also to relieve the necessity of cash generation to finance short term investments when lower sales volumes and price pressures are expected.

Mr Pedro Galdi analyst at SLW Brokerage said that all companies within the steel production chain are making adjustments. He added that "Usiminas is definitely trimming down. This news reflects the scenario of strong uncertainties worldwide."