Toyota to seek 30 pct cut in steel price

[NNN0LHI]

http://www.khaleejtimes.ae/DisplayArticle08.asp?xfile=data/business/2008/December/business_December436.xml§ion=business

(Reuters)

16 December 2008

TOKYO - Toyota Motor Corp plans to ask Nippon Steel Corp and other steelmakers for a price cut of about 30 percent in light of slower steel and vehicle demand, the Nikkei business daily reported on Tuesday.

The global financial crisis has hammered demand for cars and the raw materials used to build them, and analysts have said a big reduction when steel price negotiations begin early next year was widely expected.

But JPMorgan auto analyst Takaki Nakanishi said the brokerage was currently assuming a decline of 10,000 yen ($110.5) per tonne, against a cut of 30,000-35,000 yen ($331-386) reported in the Nikkei, leaving room for far bigger cost improvements next year.

“If a leading manufacturer like Toyota takes the position of demanding prices be cut to 2005/06 levels, it could have a major impact on steel price negotiations worldwide,” he wrote in a report.

[doc03]

1. Steel production in the USA was 1,168,000 tones

or 49% of capacity the week of Dec. 13, 2008. Steel production was down from 2,102,000 or 88.1 % of capacity the same period last year. That's down nearly 1,000,000 a week since last year. At 49% capacity the steel companies are losing millions a day now if Toyota demands they lower their prices the steel industry will be on the ropes just like Autos. My company is considering shutting down all its Ohio plants the first quarter of 2009. I have never seen it this bad in 38 years at the mill.

http://www.steel.org/AM/Template.cfm?Section=Raw_Steel_Production1&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=23211

[madrchsod]

3. i think toyota has reached it`s tipping point....

the only mill i know of is sterling steel that has increased production in the last few months. resurrected from the remains of the northwestern steel and wire, sterling steel runs three melt furnaces and a 12" rod mill.4000 employees in 1980 now it`s 500. one of the best jobs i ever had was working at northwestern steel and wire sterling il..."electric steel"

[DainBramaged]

4. I thought everyone wanted efficient cars like Toyota produces?

Aren't they the quality leaders? Doesn't their entire line of cars trucks and SUVs get over 50MPG everywhere? And their cars never ever break down? I think they use kryptonite or something in the engine blocks. And that men in white gloves come to your house and fix the car for you if god forbid it ever needed service.


TOYHONNIS the god of all transplant cars is letting it's subjects down.


:sarcasm:

[Lochloosa]

2. The Walmart Business Plan.