Dow Jones reported that Nippon Steel Corporation has confirmed that Brazilian miner Vale SA has agreed to a 28% to 48% reduction in 2009 iron ore prices for the Japanese steel maker.

A Nippon Steel spokesman said that "What Vale has announced about the iron ore prices is true." He declined to comment on how Vale's prices after the 28% to 48% cuts will compare to prices agreed earlier with Rio Tinto PLC.

Vale said that prices for iron ore fines will decline 28.2% from the 2008 contract price, while iron pellet prices, much prized for their efficiency in blast furnaces, will decrease 48.3%.

(Sourced from www.dowjones.com)