Toyota, Nippon Steel Agree on Price Hike for 1st Half of FY 2023

Jiji Press

17:51 JST, March 4, 2023

TOKYO (Jiji Press) — Toyota Motor Corp. and Nippon Steel Corp. have agreed on an increase in steel prices in their regular price negotiations, it was learned Saturday.

Under the agreement, the prices of steel materials that Toyota will supply to affiliated parts suppliers in the first half of fiscal 2023, which starts in April, is expected to increase by about ¥10,000 per ton from the second half of fiscal 2022.

This will be the fourth consecutive half-year price increase.

Toyota procures steel materials used by itself and its parts suppliers in bulk. In principle, the company negotiates prices with Nippon Steel every six months.

The results of their negotiations are considered an important indicator of domestic steel prices and are watched closely not only by other automakers but also by machinery and electrical appliance manufacturers.

In the second half of fiscal 2022, Toyota raised its steel supply prices by approximately ¥40,000 from the first half of the year, marking the largest price increase.

The price increase recently agreed by Toyota and Nippon Steel is believed to be relatively modest in light of the recent slowdown in the upward trend of prices for iron ore and other materials.

Faced with the burden of environmental investment for decarbonization, as well as with rising iron ore, coal and transportation costs, Nippon Steel and other steelmakers are asking their customers to accept price hikes