Brazilian mining giant Vale is slashing its price for iron ore by about 10 percent.

Vale says the cut is in line with a drop in spot prices in China.

It did not give more details in a statement issued Friday, and the company declined to comment further.

O Estado de S. Paulo newspaper says Vale's iron ore currently sells for $150 per ton, and that should drop to $135.

It adds that since 20 percent of the world's steel is manufactured with iron ore from Vale, the price reduction should have a significant impact on Asian and European economies.

Vale SA, based in Rio de Janeiro, is the world's largest producer of iron ore.