• Kyodo

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Major domestic steelmakers are in final talks with automakers to raise steel prices in the April to September period by more than ¥10,000 per ton due to soaring raw-materials prices, industry sources said.

The price hike is expected to increase auto production costs by more than ¥10,000 per vehicle. This will eat into the earnings of carmakers recovering from sharp falls in output following the March 11 disaster because it will be difficult to pass on the price rise to consumers, the sources said.

Nippon Steel Corp. had first requested an increase in prices of around ¥15,000 per ton in negotiations with Toyota Motor Corp. However, the company is now expected to agree on a price hike of a little more than ¥10,000.

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