Nippon Steel is going to increase its steel prices

Japan's largest steel producer Nippon Steel has decided to increase its steel prices for the next 6 months.

Japanese automaker Toyota has reached an agreement with Nippon Steel, the country's largest steelmaker, to which it supplies steel, to increase its steel prices by $74/tonne for the first 6 months of FY 2023/2024.

These two big companies evaluate automotive steel prices every 6 months based on coking coal and iron ore prices. Nippon Steel's selling price to Toyota is seen as an important indicator of domestic steel prices in Japan.

Nippon Steel, which last increased its steel prices to Toyota Automotive in September 2022, increased its steel costs by 20-30% in the market.

Rising costs are at a disadvantage for Japanese steel companies importing coking coal.