Reuters reported that Nippon Steel Corp and other Japanese steelmakers have agreed with Toyota Motor Corp to cut steel prices by more than 10% this business year.
The newspaper said auto steel prices will fall by about JPY 15,000 (USD 150) per tonne from June, marking the first price reduction in seven years and one of the biggest cuts ever. The report added that Toyota may seek further cuts, depending on the results of iron ore price talks. It added that steelmakers are expected to slash prices for other automakers, shipbuilders and electronics companies too.
Mizuho Securities analyst Mr Hiroshi Matsuda said "The size of the price reduction is far smaller than expected. It is hard to understand why Toyota would agree to this price." The automaker agreed on a steel price hike of about JPY 28,000 last business year.