Under the deal, which could lead to an enormous increase in purchasing costs for the Japanese industry, Toyota will pay an additional 19,500 yen ($213.2) to 20,000 yen a ton to buy steel from Nippon Steel, the Nikkei said, citing company sources.
Cold-rolled steel sheet costs will rise 25 per cent to about 100,000 yen a ton, while the price of rust-resistant steel will exceed 100,000 yen, the business daily reported.
The increase, which is the first in two years, will return steel prices to the record high reached in fiscal 2008, and serve as a benchmark for similar agreements between Japan’s other steel suppliers and large-lot customers, the daily said.
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