JAPAN

Steel Firms Raise Price: The first steel price increase in nine years will add to Japanese auto makers’ difficulties but won’t be enough for steel makers to enjoy a rise in profits during the current fiscal year, analysts say. Negotiations between Toyota Motor Corp., Japan’s largest auto maker, and Nippon Steel Corp., the world’s largest steel maker, ended last week with an agreement to boost prices for thin stainless steel sheets by 4%,according to observers. The price hike will boost the cost of production, because steel accounts for close to 70% of a car’s weight. At a time of weak demand for autos in Japan and abroad, analysts say, it’s unlikely that auto makers will be able to pass rising costs on by increasing finished car prices or squeezing savings from their parts suppliers. While the price hike doesn’t pose a major threat to Japan’s top auto makers, it will hamper efforts of some to return to profitability.