TOKYO, Dec 30: Brazil's Companhia Vale do Rio Doce, the world's top iron ore producer, has sealed deals with Japanese and South Korean firms for a 9.5 per cent price rise next year, showing that once soaring costs for the commodity are stabilizing.

The Brazilian firm said in statements it had agreed to the price increase with Nippon Steel, which is the world's second largest steelmaker after the Arcelor Mittal behemoth, along with four other Japanese steelmakers.

We reached an agreement with Brazil's CVRD over a 9.5 per cent increase, a spokesman for one of the firms, JFE Steel, confirmed Thursday.

The iron ore leader said it also agreed with South Korea's POSCO to lift prices by 9.5pc relative to 2006. CVRD last week said it had agreed to a 9.5pc increase with China's biggest steelmaker Shanghai Baosteel Group Corp in a surprisingly swift deal that set the benchmark for global contracts.—AFP