TOKYO, April 22 (Reuters) - Nippon Steel Corp. will seek a price increase of nearly 40 percent from automakers and other customers for its main steel products to offset soaring raw materials costs, the Nikkei business daily reported on Tuesday.

Nippon Steel, the world’s second-biggest steelmaker, said it would not reveal details of price talks with customers.
However, such an increase would be in line with previous comments by the firm.
Nippon Steel has said recent spikes in iron ore, coal and other materials prices would cost it 1 trillion yen ($9.7 billion) more this business year, which equates to a 38 percent cost increase, or 30,000 yen per ton.
Japanese steelmakers face increasing pressure to raise prices after agreeing to pay a higher-than-expected $300 per ton for coking coal this year, triple the price it paid last year.
Last month, smaller peer JFE Holdings Inc., the world’s third-biggest steelmaker, said the company was seeking a price hike from customers of about 25 percent, or 20,000 yen per ton.
Makers of cars, machinery and electronics products are resisting a large price hike, calling on steelmakers to tighten their belts and absorb rising costs.
Teddy Irawan, deputy director for national sales and marketing at Nissan Motor Indonesia, said higher energy and steel prices would deal a serious blow to Indonesia’s car sales, which are gradually recovering from the government’s 2005 decision to boost domestic fuel prices.
“First is the possibility of a higher fuel price, which could cut (the country’s car) sales by 10-20 percent from this year’s forecast,” Irawan told Reuters. “An increase that much (40 percent) in steel prices could cut the automotive sales in Indonesia by another 10 percent.”
Nippon Steel has undertaken to step up cost-cutting efforts. In recent years it has already reported savings of more than $300 million a year in cost cutting and greater efficiency.