Toyota Agrees with Steelmakers on Price Hike

Economy

Nagoya, Aug. 22 (Jiji Press)--Toyota Motor Corp. <7203> has broadly agreed with leading Japanese steelmakers on a rise in its purchase prices of automobile steel sheets, informed sources said Thursday.

Under the agreement, steel sheet prices for the first half of fiscal 2019, which started in April, are believed to increase by several thousand yen per ton, enough for a passenger car, from the levels a half year before, the sources said.

In an unusual move, Toyota took into consideration soaring logistics costs caused by labor shortages in the price negotiations with the steelmakers.

From the steelmakers, Toyota buys steel materials including those for its parts suppliers. Toyota has already notified the suppliers of its plan to raise the prices of steels for them in the second half of fiscal 2019, the first hike in two and a half years, the sources said.

Every six months, Toyota holds price talks with the steelmakers, including Nippon Steel Corp. <5401>, to reflect changes in prices of materials such as iron ores and coking coals.

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