Parent company Tata Steel confirmed to Reuters that its Anglo-Dutch Corus unit would continue to keep capacity idle into the second half of 2009.
Corus, Europe's second-largest steelmaker and which contributes most of Tata Steel's output, plans to keep 40% of its 20 million tonnes capacity unutilised in the first six months of this year.
Corus chief executive Phillipe Varin said: "As we see market conditions, the next two quarters will continue to see weak demand. We won't extend production cuts, but we are not likely to restart either."
Tata said global steel production tumbled 24 percent in the last quarter of 2008, and steel prices have dropped up to 70 percent since mid-2008.
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