UPDATE 1-Vale says to cut ore price 10 pct in Oct

* Spokeswoman confirms earlier media report on 10 pct cut

* Ore price reduction follows decline in Chinese prices
(Adds confirmation from company, background)

SAO PAULO, Aug 27 (BestGrowthStock) – Brazil’s Vale (VALE5.SA: ) (VALE.N: ), the
world’s largest iron ore miner, plans to unveil a reduction of 10 percent
in ore prices from October, a company spokeswoman said Friday.

The spokeswoman was responding to Reuters’ request for confirmation of
a report in daily O Estado de Sao Paulo that quoted director of development
Jose Carlos Martins as saying Vale will define new prices next week.
Martins told Estado that iron ore prices should be 9 or 10 percent lower as
part of the company’s quarterly pricing strategy.

The Brazilian company will charge its customers $135 per tonne on
average from $150 now, Estado reported, citing analysts. The move follows a
drop in spot prices in China in the past months.

Earlier in August, Martins had said in Peru that he did not expect any
big movements in iron ore prices due to firm demand in China.
[ID:nN05154039]
(Reporting by Elzio Barreto; Editing by John Picinich)

UPDATE 1-Vale says to cut ore price 10 pct in Oct