Toyota, Nippon Steel Agree on Steel Price Hike from Oct.
Tokyo, Aug. 28 (Jiji Press)—Toyota Motor Corp. has agreed with Nippon Steel Corp. to raise steel procurement prices by about ¥12,000 per ton from October, marking the first increase in four years, according to informed sources.
Toyota and Nippon Steel have reached an agreement to hike steel procurement prices by approximately ¥12,000 per ton starting in October. This marks the first increase in four years, according to sources. Toyota and Nippon Steel typically negotiate steel prices twice a year, once for the first half and once for the second half of each fiscal year. In the current fiscal year, both companies had kept prices unchanged for the first half.
Toyota holds significant bargaining power as it purchases steel collectively, including supplies for its affiliated parts manufacturers. The negotiations with Nippon Steel, known as the "champion negotiations," are closely watched as a benchmark that could influence industries beyond automaking, such as electronics and shipbuilding.
The price increase is believed to reflect rising costs of steelmaking raw materials like coal and higher energy expenses due to tensions in the Middle East. Toyota is also expected to raise the prices at which it supplies steel to its affiliated parts manufacturers in line with the increased procurement costs. The next step will be to determine whether these higher costs will be passed on to vehicle prices.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
