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PrintTOKYO, Dec 16 (Reuters) - Toyota Motor Corp plans to ask Nippon Steel Corp and other steel makers for a price cut of about 30 percent amid slower steel and vehicle demand, the Nikkei business daily reported on Tuesday.
Toyota, the world's top automaker, is expected to slash its 2009 sales forecast by at least 1 million vehicles and outline plans to cut costs as the financial crisis threatens the industry.
Negotiations between Toyota, one of Japan's biggest buyers of steel, and industry leader Nippon Steel have been seen as the market benchmark and if they agree it will be the first steel price cut in seven years, the Nikkei said.
A Toyota spokesman had no immediate comment. A Nippon Steel spokesman declined comment.
Steel makers had been raising prices on the back of robust demand, driven by China and other emerging economies and jumps in iron ore and coal prices.
But demand has shrunk in recent months as the global economic downturn slammed the brakes on car demand.
Given these developments, in negotiations beginning early next year Toyota will ask for a cut of 30,000-35,000 yen ($331-386) per tonne for purchases for the business year starting next April 1, the paper said.
For Toyota, a price reduction of 30,000 yen per tonne would mean cost cuts of nearly 300 billion yen a year, the Nikkei said.
Analysts say a big reduction when price negotiations begin is factored in.
Shares in Toyota were flat at midday while Nippon Steel fell 4.1 percent to 284 yen. The Nikkei average .N225 was down 0.7 percent. ($1=90.63 Yen)
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