Brazilian miner Vale is not holding any negotiations with China Iron & Steel Association on annual iron ore price talks and will stick to its previous practice of supplying iron ore to China according to temporary price, which is 60 to 80 percent of the 2008 price, company CEO Roger Agnelli said on Wednesday.

Vale believes that the current price cut of 33 percent is reasonable and fair, as the price is lower than the current spot price, Shanghai Securities News reported, quoting Roger Agnelli.

The China Iron and Steel Association (CISA) has reached an agreement with Anglo-Australian Fortescue Metals Group Ltd (FMG), Australia's third largest iron ore producer, on a 35.02-percent price cut for iron ore fines last week.

The price cut is steeper than the 33 percent cut agreed by Rio Tinto and Japanese and Korean steel mills.

CISA hopes that the world's three biggest miners-Rio Tinto, BHP Billiton and Vale-will accept the price cut it agreed with FMG.

Though the steel price plunged during the last few weeks, the output of domestic steel mills has been high, boosted by bullish economic outlook over the long-term.

In August, the country's large and medium-sized steel mills produced on average a record high of 1.67 million tons crude steel per day.

But analysts say the price of imported iron ore is expected to fall by 15 percent after August, following the drop in steel prices.

Roger Agnelli said many of the Chinese steel mills are running out of previous iron ore stockpile and are building up their inventory again. Vale now is working at full capacity to meet the need of a resurgence in demand.

Vale has decided to strictly follow its bigger rivals Rio Tinto and BHP Billiton this year in the iron ore price talks, as it suffered huge losses after the two companies secured better prices following Vale's hasty agreements with Japanese and S. Korean steel mills over iron ore prices in 2008.