RIO DE JANEIRO, April 29 (Reuters) - Brazilian miner

Vale is studying alternatives for its nickel

portfolio including selling, making partnerships or putting

assets in care and maintenance, as the market faces a

challenging short-term scenario, its CEO said on Tuesday.

Chief Executive Gustavo Pimenta told reporters in Rio de

Janeiro the market is oversupplied due to output from Indonesia.

"Nickel remains attractive in the medium and long-term," he

said, citing demand for electric cars production.

"The question is how to remain profitable in the short

term," the executive added.

The CEO noted Vale must work to improve efficiency of its

assets, and cut costs to have a profitable nickel business

within current market prices.

"We are evaluating if some assets in the portfolio could

have a strategic alternative," Pimenta added.

In January, Vale said its subsidiary Vale Base Metals had

started a "strategic review" of its nickel assets in Thompson,

Canada, including their potential sale.

Pimenta also said on Tuesday that Vale has started to

reverse in April the iron ore

production decline

it reported in the first quarter of the year, adding he is

"very confident" that the miner will meet its 2025 production

guidance for the steel-making ingredient.

The executive noted the company could again be the

world's largest iron ore producer if rivals such as Rio Tinto

miss their output estimates for the year.