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CORRECTED-Japan steelmakers' shares fall after reports of price cuts
August 24, 2017 / 12:32 AM / in 4 months

CORRECTED-Japan steelmakers' shares fall after reports of price cuts

(Corrects to September not March in first paragraph)

TOKYO, Aug 24 (Reuters) - Shares of Nippon Steel & Sumitomo Metal Corp and other Japanese steelmakers fell on Thursday after media reports the country’s biggest producer of steel had agreed on price cuts for the six months through September with Toyota Motor Corp.

Nippon Steel, which agrees on prices with Toyota on a twice-yearly basis that are considered a benchmark for both industries, had earlier said it wanted to raise prices for its main customers.

The Nikkei business daily reported that Toyota will drop its wholesale steel prices for its parts suppliers by around 5,000 yen ($46) per tonne in the October-to-March period.

The cuts come after Japan’s biggest automaker concluded negotiations with Nippon Steel and is passing reductions in prices on to suppliers, the Nikkei said.

Nippon Steel was down 3 percent at 0022 GMT, while JFE Holdings Inc lost more than 4 percent. Kobe Steel Ltd was down more than 5 percent. The broader Tokyo market was off by 0.3 percent. ($1 = 108.9800 yen) (Reporting by Aaron Sheldrick; Editing by Chang-Ran Kim)

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