August 22, 2008

Toyota agrees 30% plus steel price hikes –Report

The Asahi Shimbun daily reported that Nippon Steel Corp and other big Japanese steelmakers have reached broad agreement with Toyota Motor Corp to raise steel prices by more than 30%.

The paper said that the increases above JPY 25,000 (USD 238) per tonne would push steel prices up over JPY 100,000 a tonne for the first time, topping a previous high of JPY 99,000 in 1982/83. The paper added that Toyota rejected such a price hike, but agreed on a price just below the suggested increase.

Officials at Nippon Steel and Toyota were not immediately available for comment.

Nippon Steel has said recent spikes in iron ore, coal and other materials prices would cost it JPY 1 trillion more this business year, which equates to a 38% cost increase, or JPY 30,000 yen per tonne.