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Brazilian long steelmaker Gerdau (GGB) sees signs that steel demand is bouncing back from the depths of the global economic slowdown, the company's chief executive said Thursday.

"There's been a gradual recovery (in demand), and we believe it's valid to think that over the next few quarters the recovery will continue," Gerdau CEO Andre Gerdau Johannpeter said. Johannpeter made the comments during a conference call with reporters.

Every month has seen improvement, the executive said. In July, for example, consolidated sales rose 16% from June, Johannpeter said.

With the gradual return in demand, prices have stabilized - a scenario that should remain in place through the second half of the year.

Earlier Thursday, Gerdau reported a second-quarter net loss of 329 million Brazilian reals ($181 million), down from a net profit of BRL2.12 billion in the same quarter a year ago. The loss was attributed to non-recurring accounting charges.

"In the second quarter we were profitable, if you discount the non-recurring charges," Johannpeter said. "We expect similar results over the course of the second half, with improving markets and stock readjustments."

Johannpeter also said the company was still focused on its operations, discounting any talk that it was eyeing distressed competitors.

"Our focus has been on adjusting our operations to achieve an equilibrium," Johannpeter said. "We're not looking at consolidation at this time."

While Brazil has shown itself resilient to the broader global slowdown, the rest of the world remained burdened by the retreat in economic activity.

"There's still some time left" before the crisis is over, Johannpeter said. "When it's over, we'll return to looking at opportunities. Right now, we're focused on profitability."

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; Jeff.Fick@dowjones.com