Vale Slashes Iron Ore Prices for Japan and Korea

11 June 2009 (Last Updated June 11th, 2009 18:30)

Brazilian miner Vale said it has agreed to reduce iron ore and pellet prices by 28.2% for shipments to Japanese and Korean steel makers this year. The announcement follows 33% cuts announced by rival Rio Tinto. Vale said the deal will impact its revenues but strengthen its posit

Brazilian miner Vale said it has agreed to reduce iron ore and pellet prices by 28.2% for shipments to Japanese and Korean steel makers this year.

The announcement follows 33% cuts announced by rival Rio Tinto.

Vale said the deal will impact its revenues but strengthen its position during talks with Chinese steel makers who are demanding cuts of up to 50%.

The company has signed agreements with Nippon Steel, POSCO, Sumitomo Metal Industries, Kobe Steel and Nisshin Steel.