Japanese Chemical Trader blog

Japan Chemical Trading Blog

Steel Price agreed to Reduce

According to the Nikkei Newspaper on August 21, Toyota Motor Corporation, Nippon Steel & Sumitomo Metal Corporation and other major steel companies agreed to reduce the steel sheet price by a little less than JPY3,000 (approx. USD30) per ton (a little less than 3%) for the April–September period in 2014.

The fall in the price of iron ore, the raw material for steel (USD170 per ton in 2011, down to less than USD100 now), and coal (USD130 per ton in 2008, down to less than USD80 now) are in the background to this decision.
The agreed price will be applied to products shipped in April and already delivered.

This is a common practice in Japan, but is it practiced in other countries as well?