Toyota maintains current rolled steel prices for parts producer for April-September

This move is a change in strategy after several consecutive cycles of decline

Toyota Motor Group, Japan’s largest automaker, will maintain prices for flat-rolled steel sold to affiliated parts manufacturers covered by its centralized procurement scheme for the first half of fiscal year 2026/2027 (April-September), according to Mysteel Global.

Last week, Toyota began informing buyers under its procurement scheme that steel sheet prices would remain at the same level as in the second half of the 2026/2025 fiscal year (October 2025-March 2026). The company’s current prices for hot-rolled coil are set at 121,500 yen per ton ($772/t), which is above market prices.

This move is a change on Toyota’s part. In particular, the company has consistently lowered prices over four six-month cycles since the second half of the 2023/2024 fiscal year.

News of Toyota’s decision indicates that negotiations with Nippon Steel and other steelmakers for supplies for the next period have either already been concluded or will be concluded shortly.

The automaker purchases steel for use in its own factories and component manufacturers wholesale from Nippon Steel and other companies to gain leverage in negotiations. The agreement that is reached is a benchmark that other factories usually follow in their relationships with consumers.

Last week, the Nikkei business publication noted that due to the impact of US tariffs and rising raw material prices, Toyota’s consolidated net profit for the current fiscal year ending in February 2026 is expected to decline by 25% year-on-year – to 3.57 trillion yen.

However, the publication suggested that the automaker decided to keep the price of steel for suppliers unchanged amid expectations that the cost of iron ore, a key component in its steel product pricing formula, would fluctuate only slightly in April-September. However, this assumption was made before the escalation of the conflict in the Middle East.

It should be noted that in February 2026, the global hot-rolled coil market continued the upward trend that began in January. Offers in Europe have risen by €25-45/t since the beginning of the year, and in the US by $50/t. China lagged behind the trend, showing an increase of only $2/t.