Brazilian Miner Vale Cuts Iron-Ore Prices

The Brazilian mining giant Vale agreed to cut prices for iron ore by 28%, less than did Rio Tinto in a similar deal struck with Japanese and Korean steelmakers two weeks ago.

Still hanging over the industry's head are negotiations with Chinese producers, who have been insisting on price cuts of about 40%.

Australia's Rio Tinto had agreed to reduce its ore prices by a third. The contracts signed by the world's big three ore producers -- Rio, Vale and BHP Billiton -- are considered to be the benchmark. The most recent round of price cuts are the first in seven years.

Vale's American Depositary receipts traded higher Wednesday, up 7 cents to $19.86, on volume of nearly 29 million shares, about the average.

Rio Tinto's New York-listed ADRs rose 5.7% to $206.44, and BHP's were up 1% to $60.54.

The industry has been focused lately on Australia and China, after Rio Tinto broke off an agreement last week to take $19.5 billion from the Chinese aluminum concern Chinalco. Instead, Rio and BHP agreed to a link-up by which they would merge Australian iron ore assets in a joint venture.

The deal, however, has come under regulatory scrutiny for possible monopoly concerns.