JAPAN: Nippon Steel, Toyota agree on steel price cut of around 5%
Nippon Steel and Toyota Motor have agreed to reduce steel product prices for the October to March period by JPY5,000 (US$64.80) a ton compared with the previous fiscal half year, sources told Kyodo News.
While the rate of the price cut varies depending on the type of steel product, the prices of products for automobile manufacturing will be around 5% lower than they were in the April to September period.
The prices were raised by about JPY13,000 ($168.50) per ton for the first half of fiscal 2011 due to rises in the cost of raw materials such as iron ore but Toyota had asked for price reductions for the second half of the fiscal half, which ends March 2011, as raw material costs dwindled amid the global economic slump, the sources said.
Although steelmakers protested against large price cuts as they are struggling with export operations due to competition from Chinese and South Korean rivals, Nippon Steel eventually agreed to reduce the prices, the sources said.
The move is expected to ease the burden on Japanese automakers, which have been suffering from the effects of the strong yen that eats into overseas profits of export-related companies when repatriated, Kyodo News noted.
Companies: Toyota Motor Corporation
This QUBE report from just-auto report provides a comprehensive overview of the global material trends sector, major suppliers, top markets, technology trends and market size forecasts. Use this repor...
It's been a busy week as usual with a whole raft of announcements jostling for position, but one of the most eye-catching, along with BMW and Toyota formalising their joint ventures, was Mazda's decis...
Updated in the last quarter, this report has been extracted from QUBE and provides a comprehensive overview of the vehicle lightweighting megatrend, the technologies, materials and suppliers involved,...
Toyota is close to an agreement to purchase light commercial vans from PSA Peugeot Citroen's threatened Sevelnord plant in northern France, La Tribune has reported....
Japan Automobile Manufacturers Association chairman Akio Toyoda has urged the Japanese government to review automobile-related taxes to help stimulate the domestic market....
- VW's amazing new 1.0-litre Golf engine - Analysis
- What does 'Brexit' mean for the auto sector?
- Toyota finally makes an economical Prius
- Volkswagen’s steady hand on the tiller - Comment
- Monroe riding high on the suspension market
- VW to axe 40 models - report
- Ex-VW CEO Winterkorn under investigation
- Fuel economy scandal pushes MMC deep into red
- NEVS drops Saab as it establishes identity
- EC admits it "made mistakes" as UK about to vote