MySQL Replication: Seconds Behind Master super high

I've set up a slave db server for my production database, but when I checked the show slave status, I noticed a super big number in seconds behind master.

This is the output:

           Slave_IO_State: Waiting for master to send event
              Master_Host: 1.2.3.4
              Master_User: replicator
              Master_Port: 3306
            Connect_Retry: 60
          Master_Log_File: mysql-bin.000173
      Read_Master_Log_Pos: 15909435
           Relay_Log_File: mysqld-relay-bin.000079
            Relay_Log_Pos: 91173356
    Relay_Master_Log_File: mysql-bin.000093
         Slave_IO_Running: Yes
        Slave_SQL_Running: Yes
          Replicate_Do_DB: 
      Replicate_Ignore_DB: 
       Replicate_Do_Table: 
   Replicate_Ignore_Table: 
  Replicate_Wild_Do_Table: 
  Replicate_Wild_Ignore_Table: 
               Last_Errno: 0
               Last_Error: 
             Skip_Counter: 0
      Exec_Master_Log_Pos: 91173210
          Relay_Log_Space: 8179978166
          Until_Condition: None
           Until_Log_File: 
            Until_Log_Pos: 0
       Master_SSL_Allowed: No
       Master_SSL_CA_File: 
       Master_SSL_CA_Path: 
          Master_SSL_Cert: 
        Master_SSL_Cipher: 
           Master_SSL_Key: 
    Seconds_Behind_Master: 486330
Master_SSL_Verify_Server_Cert: No
            Last_IO_Errno: 0
            Last_IO_Error: 
           Last_SQL_Errno: 0
           Last_SQL_Error: 
Replicate_Ignore_Server_Ids: 
         Master_Server_Id: 1
1 row in set (0.00 sec)

ERROR: 
No query specified

Then when I run SHOW PROCESSLIST, I see that the time of the thread matches the time indicated in seconds behind:

mysql> SHOW PROCESSLIST;

| 40 | system user |           | NULL | Connect |  66530 | Waiting for master to send event | NULL             |
| 41 | system user |           | NULL | Connect | 486330 | Reading event from the relay log | NULL             |
| 45 | root        | localhost | NULL | Query   |      0 | NULL                             | SHOW PROCESSLIST |

That time is dropping, slowly. Read_Master_Log_Pos, Relay_Log_Pos, Exec_Master_Log_Pos and Relay_Log_Space are changing all the time.

I've also check the time/date and both servers are on sync.

On the Master side:

mysql> SHOW PROCESSLIST;

| 66739 | replicator | 1.2.3.5:52884 | NULL                | Binlog Dump |    65671 | Master has sent all binlog to slave; waiting for binlog to be updated | NULL             

and show slave hosts looks empty...

mysql> SHOW SLAVE HOSTS;
+-----------+------+------+-----------+
| Server_id | Host | Port | Master_id |
+-----------+------+------+-----------+
|         2 |      | 3306 |         1 |
+-----------+------+------+-----------+
1 row in set (0.00 sec)

mysql> 

So what is actually going on here? Looks like the slave is actually connected and working, but very very slow? Can someone give me some hints on how to do more debug on this? Server is rather idle at 95%.