Toyota Motor Corp. and Nippon Steel & Sumitomo Metal Corp. provide the latest template for metal-buying contracts between producers and OEMs, as they agreed to raise steel sheet prices retroactive to April 2013 by 10,000 yen.
“Nippon Steel has said its margin have been squeezed in recent years as the company could not pass on higher costs of raw materials such as iron ore and coking coal to manufacturers. Toyota, which is set to gain from higher export margins due to the weaker yen, will offset this hike in its raw material steel prices through restructuring instead of increasing new-vehicle prices,” according to the Nikkei via Reuters.
Meanwhile, the 3-month price of steel billet saw the biggest upwards shift for the day, rising 12.0 percent on the LME to close at $140.00 per metric ton on Monday, July 22. At $115.00, the cash price of steel billet finished the market day on the LME up 9.5 percent.
The China price of iron ore 58% fines from India ticked a slight bit higher. Chinese HRC saw little change in its price on Monday. The price of Chinese coking coal continues hovering in the same spot for the fifth day in a row.
The US HRC futures contract 3-month price held steady around $605.00 per short ton. The spot price of the US HRC futures contract saw little movement at $635.00 per short ton.