It is reported that Nippon Steel Corp and Toyota Motor Corp basically agreed to raise steel product prices for the April September period by JPY 20,000 per tonne on average from those for fiscal 2009 that ended in March.
It will likely raise Nippon Steel’s product prices from the fiscal 2009 average of JPY 75,400 per tonne to close to the all time high of JPY 104,700 per tonne for fiscal 2008.
The hike, due to soaring iron ore and other steel law materials prices since April, is expected to raise passenger car prices by around JPY 20,000 per unit.
Steel and auto producers used to set steel product prices annually. Starting in April, however, steel materials prices are determined on a quarterly basis, prompting steelmakers to call for a switch to quarterly pricing.