Platts reported that Japanese automakers are finding it difficult to pass on increased prices of steel, while steelmakers continue to press automakers to shoulder the JPY 30,000 per tonne rise in the cost of steel production.

A spokesman for Honda Motor said his company had no plans to raise car prices. He said that "It is not that easy. We have to see the car market trends and we are seeing difficult times ahead adding that his company was still in negotiations with the Japanese steelmakers for annual prices of steel sheet used for car bodies.

Japanese local press reported that a major automaker gave into the request of a steelmaker to raise prices of steel sheet by JPY 30,000 per tonne for shipments from April. Automakers Toyota Motor, Honda Motor and Nissan Motor, and steelmakers JFE Steel and Sumitomo Metal Industries, however, all said that negotiations were still continuing.

Steelmakers said that stalling price negotiations was not affecting their shipments and automakers would continue to receive the steel they need on time this month.

Steelmaker officials said they had told their customers that costs of steelmaking have risen by JPY 30,000 per tonne on average this year, on the back of surging iron ore and coal prices.