Toyota has said it could drop its steel products price to suppliers by up to 9% from next month but the final price depends on negotiations with steelmakers.
The automaker purchases steel for its suppliers to secure a better deal and any move would come before Toyota finishes its own price talks with manufacturers such as Nippon Steel.
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Toyota could cut hot-rolled steel prices by around 9% to JPY69,500 (US$774) per tonne, while equally, the carmaker could pay JPY7/kg less for components it subsequently purchases from suppliers, Reuters reported.
Automakers are unwilling to pay more for steel in Japan where slow vehicle sales have contributed to low demand.
Japan’s JFE Holdings – the world’s sixth-biggest steelmaker – said recently it had agreed a price increase of 55% for the April-June quarter for the supply of hard coking coal from Australian mining company BHP Billiton.
A new annual contract could be sought again when the agreement finishes in July.
