Vale agreed with Nu-Iron Unlimited, a unit of U.S.-based Nucor a reduction of 48.3 percent in the price of iron pellets for 2009, the Brazilian mining firm said Friday.

The reference price agreed for 2009 is $1.2523 per tonne, Vale said.

The price cut is in line with an agreement this month between Vale and Japanese and South Korean steelmakers.

The company said it will cut fine ore prices by 28.2 percent from 2008 levels and agreed to reduce pellet prices by 48.3 percent to steelmakers in the two Asian countries.

(Reporting by Cesar Bianconi, Writing by Stuart Grudgings; Editing by John Picinich)

Price