Toyota Motor notified parts makers of 18,000 yen per tonne of higher steel price for supply steel from Toyota, which is purchased Toyota to provide parts makers and the price is base of parts price, at the meeting with parts providers at Toyota’s headquarters in Toyota city on Tuesday. Toyota reflects higher steel purchase cost on parts price when the firm agreed with Nippon Steel and other steel makers to increase the price by near 20,000 yen for April-September from annual price in fiscal 2009 ended March 2010.
Toyota reduced the price for supply steel from Toyota by 7,000 yen per tonne for flat steel in April to make the gap with market price level. With the price increase for supply steel from Toyota, the price apparently reaches around 100,000 yen for cold rolled flat steel. With Toyota’s price increase for parts makers, domestic major steel makers expect price negotiations with other automakers will progress. Toyota’s price for parts makers impacts on distributors’ market price around Nagoya where many automobile parts makers have plants and the higher price could support the market price while the market price is weak recently after Tokyo Steel Manufacturing’s price down.Japan Steel Scrap Composite Prices (Sangyo Press)
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