According to sources familiar with the matter, the agreement will mark the first price increase between the two companies in four years.
Toyota generally holds negotiations on steel supply prices twice a year, covering the first and second halves of each fiscal year. No changes were made to prices during the first half of fiscal 2026, covering the April-September period.
Toyota also purchases steel in bulk for its affiliated parts manufacturers, giving the company significant bargaining power in price negotiations.
Agreement expected to affect other sectors as well
Price negotiations between Toyota and Nippon Steel are known in Japan as “champion negotiations.” The prices agreed upon through these talks are closely monitored as a benchmark not only in the automotive sector but also by other steel-consuming industries, including electronics and shipbuilding.
Therefore, the new price agreement reached between the two companies is also expected to affect steel pricing across various other sectors.
Higher raw material and energy costs reflected in prices
The new price increase is considered to reflect higher prices for raw materials such as coal used in steel production, driven by escalating tensions in the Middle East, as well as rising energy costs.
Under the agreement, the price increase of approximately JPY 12,000 per ton is expected to take effect from October 2026.
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