Toyota Motor Group, Japan’s largest automaker, will lower prices for flat products sold to affiliated component manufacturers under its centralized procurement scheme for the first half of fiscal year 2025/2026 (April-September), according to Mysteel.
The reduction of 15,000 yen per ton ($101/t) stems from an agreement reached between Toyota and Nippon Steel. A similar price cut was announced in August 2024 for the second half of the 2024/2025 fiscal year (October-March), following a period where prices remained unchanged.
Toyota adjusts steel prices through biannual negotiations with major producers, including Nippon Steel. The latest agreement reflects declining costs of iron ore, coking coal, and other factors, providing cost relief to auto parts suppliers. The company informed certain suppliers of the changes by February 25.
In contrast, in March 2023, Nippon Steel had agreed to raise steel prices for Toyota, with products increasing by $74 per ton in the first half of the 2023/2024 financial year. Nippon Steel's unconsolidated steel shipments rose by 1.8% year-on-year to 32.03 million tons in FY2023/2024, with consolidated steel production also up by 0.5% year-on-year.
