Nippon Steel to pay 65% more for iron ore in 2008

TOKYO, Feb 18 (Reuters) - Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) said on Monday it and POSCO (005490.KS: Quote, Profile, Research, Stock Buzz) of South Korea had agreed earlier with Brazilian mining giant Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz)(RIO.N: Quote, Profile, Research, Stock Buzz) to pay about 65 percent more for iron ore in 2008 term contracts.

Nippon Steel said it would pay $78.9 per tonne for Itabira fine ore in 2008, up from $47.81 in 2007. [nPEK348125]

JFE Steel Corp, the core unit of the world's third-biggest steelmaker JFE Holdings Inc (5411.T: Quote, Profile, Research, Stock Buzz) also said it would pay 118.98 cents per FE unit for Southern System fine, FOB and Tubarao, up from 72.11 cents in 2007. (Reporting by Yuko Inoue)