TOKYO (Jiji Press) — Toyota Motor Corp.
and Nippon Steel Corp. have agreed on an increase in steel prices in their
regular price negotiations, it was learned Saturday.
Under
the agreement, the prices of steel materials that Toyota will supply to
affiliated parts suppliers in the first half of fiscal 2023, which starts in
April, is expected to increase by about ¥10,000 per ton from the second half of
fiscal 2022.
This
will be the fourth consecutive half-year price increase.
Toyota
procures steel materials used by itself and its parts suppliers in bulk. In
principle, the company negotiates prices with Nippon Steel every six months.
The
results of their negotiations are considered an important indicator of domestic
steel prices and are watched closely not only by other automakers but also by
machinery and electrical appliance manufacturers.
In
the second half of fiscal 2022, Toyota raised its steel supply prices by
approximately ¥40,000 from the first half of the year, marking the largest
price increase.
The
price increase recently agreed by Toyota and Nippon Steel is believed to be
relatively modest in light of the recent slowdown in the upward trend of prices
for iron ore and other materials.
Faced
with the burden of environmental investment for decarbonization, as well as
with rising iron ore, coal and transportation costs, Nippon Steel and other
steelmakers are asking their customers to accept price hikes