News Room - Steel Industry

Posted on 16 Dec 2008

Toyota to seek 30 pct cut in steel price -Nikkei

Toyota Motor Corp plans to ask Nippon Steel Corp and other steel makers for a cut in steel prices of about 30 percent amid slower demand, the Nikkei business daily reported on Tuesday.

Negotiations between Toyota, one of Japan's biggest buyers of steel, and industry leader Nippon Steel have been seen as the market benchmark and if they agree it would be the first steel price cut in seven years, the Nikkei said.

In negotiations beginning early next year, Toyota will ask for a cut of 30,000-35,000 yen ($331-386) per tonne for purchases for the business year starting next April 1, the paper said.

For Toyota, a price reduction of 30,000 yen per tonne would mean cut cost by nearly 300 billion yen a year, it said.

($1=90.63 Yen)