Biz Brief: Toyota to Pay More for Steel

Toyota Motor (TM) has reached an agreement with one of the world's largest steelmakers that raises prices the automaker pays for steel, according to a report. Under terms of the pact, Toyota will pay an additional 20,000 yen ($220) a metric ton to Nippon Steel in the April-September period compared to last year, the Nikkei business daily said.

The hike returns prices to record 2008 levels and would push Toyota's buying expenses higher by nearly 20,000 yen per vehicle, the Nikkei report said. A Toyota official declined to comment on the negotiations, but said that "the cost of raw materials was a parameter of total production costs" and that any increase in steel prices wasn't automatically passed on to consumers, the AFP news agency reported.

The deal will likely mean higher steel costs for other Japanese users of steel, including makers of consumer electronics, the Nikkei report said.