Toyota, Nippon Steel Agree on Steel Price Hike from Oct.

Toyota Motor Corporation and Nippon Steel Corporation have reached an agreement to increase steel procurement prices by approximately 12,000 yen per ton starting in October. This marks the first price hike for the company in four years, according to informed sources. Toyota typically negotiates steel procurement prices twice a year, once for the first half and once for the second half of each fiscal year. The prices remained unchanged during the first half of fiscal 2026, which covers the period from April to September.

Toyota possesses significant bargaining power due to its collective procurement of steel, including supplies for its affiliated parts manufacturers. Its price negotiations with Nippon Steel, which is Japan's largest steelmaker, are referred to as the "champion negotiations." These negotiations are closely monitored and serve as a benchmark that is expected to impact other industries beyond the automotive sector, such as electronics and shipbuilding.

The newly agreed-upon price increase, disclosed on Thursday, is believed to be influenced by the rising costs of steelmaking raw materials, such as coal, as well as higher energy costs resulting from escalating tensions in the Middle East.