June 10 (Reuters) - JFE Holdings Inc's unit JFE Steel Corp and Nissan Motor Co are expected to agree on hike of 13,000 yen ($163) per ton in steel sheet prices for April-September, compared with previous six months, the Nikkei business daily reported.
The talks are expected to wrap up before industry leaders Nippon Steel Corp and Toyota Motor Corp that usually set the benchmark for other firms, the daily said.
Steel sheet prices last went up sharply with a nearly 20,000 yen hike for the first half of fiscal 2010. They are seen rising about 15 percent this time around but are still expected to come in below JFE's all-time high of slightly more than 100,000 yen a ton for fiscal 2008, Nikkei said.
Steelmakers are expected to see the cost of materials to make one ton of steel during the period to rise between 13,000 yen ($163) and 15,000 yen ($188) from the previous six months, which they hope to pass on, the Nikkei said.
The hike in steel sheet prices is expected to increase the auto industry's overall procurement costs for the product by about 120 billion yen ($1.50 billion) on the year this fiscal year, based on previous-year order data from the Japan Iron and Steel Federation, the daily said.
Prices for steelmaking materials as well as automotive steel sheet were negotiated annually until fiscal 2009. But with quarterly pricing introduced for steel materials in fiscal 2010, steel sheet price negotiations began being held every six months, the report said. ($1 = 79.945 Yen) (sourced Thomson Reuters)
The talks are expected to wrap up before industry leaders Nippon Steel Corp and Toyota Motor Corp that usually set the benchmark for other firms, the daily said.
Steel sheet prices last went up sharply with a nearly 20,000 yen hike for the first half of fiscal 2010. They are seen rising about 15 percent this time around but are still expected to come in below JFE's all-time high of slightly more than 100,000 yen a ton for fiscal 2008, Nikkei said.
Steelmakers are expected to see the cost of materials to make one ton of steel during the period to rise between 13,000 yen ($163) and 15,000 yen ($188) from the previous six months, which they hope to pass on, the Nikkei said.
The hike in steel sheet prices is expected to increase the auto industry's overall procurement costs for the product by about 120 billion yen ($1.50 billion) on the year this fiscal year, based on previous-year order data from the Japan Iron and Steel Federation, the daily said.
Prices for steelmaking materials as well as automotive steel sheet were negotiated annually until fiscal 2009. But with quarterly pricing introduced for steel materials in fiscal 2010, steel sheet price negotiations began being held every six months, the report said. ($1 = 79.945 Yen) (sourced Thomson Reuters)
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