Nippon Steel Cuts Prices by 10 Percent for Toyota

Nippon Steel Corp, the world’s second largest steel manufacturer, has finally come to terms with Toyota Motor Corp to cut the autosheet by 10 percent which is less than an expected price cut. It has also been reported that the steelmaker would cut the price further towards the end of the current fiscal year. Demands of Toyota cars fell significantly in the world market due to global economic recession as well as surging Japanese Yen against foreign currencies. In fact, Toyota experienced 450 billion yen of operating in the fiscal year ending on March 31, 2009. The Japanese automaker is also expected a second straight operating loss in the current fiscal year too.

Because of economic slowdown, demands for cars, electronics and industrial products has been drastically reduced over the last one year, and thus, resulting into Steel prices in Asia being decreased by more than 50 percent to $500 per tonne. Naturally, the recent cut in steel price would definitely help the car makers like Toyota to cope up with the current economic recession and survive the poor sales in global market.

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Reuters