Japanese automaker Toyota Motor and Japanese steelmaker Nippon Steel have reached a deal on steel price hikes for the April-September period, international sources quoting the Japanese press have reported.
Under the agreement, Toyota will pay an additional 25 percent corresponding to approximately Yen 20,000 ($220) per metric ton to buy from Nippon Steel during this period compared with the fiscal year 2009, the sources said, adding that the price of rust-resistant steel consequently exceeds Yen 100,000/mt.
Being the first increase in two years, the price hike is seen as a reflection of rocketing raw material prices.