Toyota negotiates 3% price reduction with Japanese steelmakers

Negotiation with steelmakers is expected to set the stage for lower pricing contracts for other automakers.

Toyota has negotiated lower prices of metal sheets with major Japanese steel producers, according to a report in the Nikkei business daily. The report said that both sides, including steelmakers Nippon Steel & Sumitomo Metal Corporation, JFE Steel Corporation, and Toyota Motor Corporation, have agreed to a reduction of JPY3,000 (USD29) per tonne for the six months during April and September. This reflects a reduction of nearly 3% from the previous six-month period, marking the first such instance in 18 months. The pricing will be applicable to sales during the six months, including products already shipped. Toyota's negotiation will also mean that the automaker will charge a lower price for the steel it extends to parts makers in the coming six months.