Brazilian mining giant Vale said on August 27 that it would cut its prices of the mineral by 10% in October.

The decision, made as part of a quarterly revision of market prices, comes after a fall in demand in China, the top global customer, a company spokesman said, confirming a report in the Estado de Sao Paulo newspaper.

It also slightly reverses a 170% increase in iron ore prices seen this year in response to China's previously fierce hunger for the mineral, which it turns into steel for its construction and industrial boom.

The lowered price reflected the spot price for iron ore in China.

Estado de Sao Paulo said 20% of the world's steel is made with Vale's iron ore, and that the price cut would have an impact on European and Asian economies.

Citing analysts, it said the average price of iron ore should go from $150 per ton today to $135 per ton once the cut comes into effect.

Nevertheless, Vale's revenues from sales of the mineral this year should still be more than double what it was last year, around $30 billion.

Copyright Agence France-Presse, 2010