RIO DE JANEIRO -(Dow Jones)- Brazilian miner Vale S.A.'s (VALE) nickel sales grew in price and volume in the second quarter and the company sees more space for growth ahead, Chief Financial Officer Fabio Barbosa told a second-quarter results press conference Thursday.
Barbosa said there were signs of life for nickel demand, not only in China, but also in developed economies and that 70% of nickel demand was outside of China.
Barbosa also noted that stainless-steel output was up 20% in the second quarter amid a process of reducing inventories.
Nickel is a key component of stainless steel.
Tito Martins, director for ferrous metals, said there were also signs of rising demand for nickel from other industries such as autos and batteries.
Vale's nickel sales were halved in the second quarter, bringing in $916 million, compared to $1.87 billion a year ago, the company reported late Wednesday.
However, nickel sales were sharply higher than the first quarter's $639 million, owing to a 22.7% average price rise, Vale said.
Vale is continuing to restructure and optimize its global nickel operations, Martins said.
Until the beginning of the year, Vale's nickel business units, operated by Vale Inco, were working too independently, he added.
"We're going to set up a new way of working geographically," he said.
"The idea is to develop synergies in operations so that technical specialists will work at more than one site and there will also be renegotiating of some service, maintenance and supply contracts," he said.
He also said that Vale Inco would reduce costs by global sourcing and diversifying its suppliers.
Martins said there had already been a cut of 20% in Vale Inco's management personnel.
Barbosa said there had been no progress in the three-week strike by its workers at Vale Inco's Sudbury mine complex.