The paper also said Brazil's Vale SA is likely to follow suit.
The second consecutive quarterly hike will put iron ore at about $147 a ton, 140 percent higher than the fiscal 2009 price, the paper said.
Japanese steelmakers, who have agreed to negotiate resources prices quarterly instead of annually starting with the current fiscal year, are likely to settle for a price close to the proposed figure, the Nikkei reported.
With rapid price hikes in high-grade coal and iron ore, Japanese steelmakers are being forced to pass on the increases to large-lot users, including automakers, the daily reported.
Toyota Motor Corp and Nippon Steel Corp are huddling over a 25 percent hike for a key steel product to 20,000 yen ($217.6) per ton, it said.
With demand for coking coal and iron ore in China and other emerging economies expected to soar in the medium and long run, their prices are likely to stay on an upward trajectory, the Nikkei said.
"We have to pass on hikes to steel prices and ask clients to shoulder increased costs," the paper quoted JFE Holdings Inc 5411.T President Hajime Bada as saying. ($1=91.91 Yen) (Reporting by Gowri Jayakumar in Bangalore; Editing by Don Sebastian)
Sourced from www.reuters.com
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