UPDATE 1-Brazil's Vale says to trim global nickel output

(Adds Usiminas sale, share closing share price)

SAO PAULO, April 16 (Reuters) - Brazilian miner Vale (VALE5.SA)RIO.N, the world's largest iron ore producer, said on Thursday it would cut its global nickel output to adjust to flagging demand for the metal due to the slowing world economy.

The miner said it would delay the start-up of its Onca Puma nickel project in Brazil's northern state of Para by at least one year. The project was previously expected to come online in January 2010 with capacity of 58,000 tonnes of the metal from ferronickel.

The company said it will also shutdown its Sudbury nickel mines and processing plants in the Canadian province of Ontario for eight weeks.

"The shutdown will follow a previously planned normal maintenance period at the Sudbury plants during May," the company said on the local Sao Paulo Stock Exchange.

Sudbury is one of the largest nickel producing sites in the world and last year provided feedstock for the production of 85,300 tonnes of finished nickel, 31 percent of which was from Vale's output.

Vale added that it would shut down its unit for processing precious metals, a byproduct of the Sudbury nickel mining, at Port Colborne, Ontario, from June 1 through July 27, as well.

Vale reduced its iron ore output by around 10 percent late last year, along with output from other high cost metals production units in sectors such as aluminum.

Vale shares on the Sao Paulo Stock Exchange closed up 0.8 percent at 30.10 reais, while the blue chip Bovespa index .BVSP closed trade up 1.7 percent.