July 23 (Reuters) - Nippon Steel & Sumitomo Metal Corp and Toyota Motor Corp have agreed to raise steel sheet prices by about 10 percent for April-September as yen falls, the Nikkei reported.
Negotiations between the world’s second-biggest steelmaker and the best-selling carmaker serve as a benchmark for Japanese steel sellers for contracts with automakers, shipbuilders and other manufacturers.
The 10,000 yen a ton price increase from the previous six months will be applied retroactively to shipments since April, the paper said.
The dollar and euro have gained about 15 percent against the yen so far this year on expectations of aggressive monetary easing in Japan.
Nippon Steel has said its margin have been squeezed in recent years as the company could not pass on higher costs of raw materials such as iron ore and coking coal to manufacturers.
Toyota, which is set to gain from higher export margins due to the weaker yen, will offset this hike in its raw material steel prices through restructuring instead of increasing new-vehicle prices, the business daily said.
The Nikkei did not give further details of Toyota’s plans.
Nippon Steel lags behind only ArcelorMittal in steel output and competes with South Korea’s POSCO in the region. (Reporting by Garima Goel in Bangalore)