Toyota to Agree to Steel Price Hike

Nagoya, May 15 (Jiji Press)–Toyota Motor Corp. is expected to agree to a steel sheet price hike exceeding 20,000 yen per ton in negotiations with Nippon Steel Corp. , informed sources said Thursday.

The two industry giants are expected to reach a formal agreement as early as next week, the sources said.

As a result, the steel sheet price is due to surpass 100,000 yen per ton, hitting an all-time high for the first time in 26 years.

The price hike is likely to influence price negotiations between other automakers and steelmakers, industry experts said.

In line with soaring prices for iron ore and other raw materials, Nippon Steel had asked Toyota to accept a price hike of over 30,000 yen. Toyota decided it is necessary to agree to a certain price increase in order to secure stable steel sheet supplies, the sources said.END

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