Vale sets up to 48 pct price cut with Japan, Korea

SAO PAULO, June 10 (Reuters) - Brazilian mining giant Vale (VALE5.SA)(VALE.N) agreed Wednesday to cut 2009 iron prices by as much as 48.3 percent with Japanese and South Korean steelmakers.

The company said in a securities filing it will cut fine ore prices by 28.2 percent from 2008 levels and agreed to reduce pellet prices by 48.3 percent.

Vale said the accord includes Japan's Nippon Steel Corp. (5401.T), South Korea's POSCO (005490.KS) and three other Japanese steelmakers. (Reporting by Elzio Barreto and Guillermo Parra-Bernal; Editing by John Picinich)