JFE, Vale agree to 65% rise in iron ore price-source

TOKYO, Feb 18 (Reuters) - JFE Steel Corp has agreed to a 65 percent rise in the iron ore price it pays Brazilian mining giant Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz)(RIO.N: Quote, Profile, Research, Stock Buzz) in 2008, industry sources said on Monday.

JFE Steel is a core unit of JFE Holdings Inc (5411.T: Quote, Profile, Research, Stock Buzz), the world's third-biggest steelmaker.

Chinese sources told Reuters earlier that Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) has agreed to the same 65 percent rise in the price it will pay for iron ore under the term contracts. (Reporting by Yuko Inoue)