Risks from Price Volatility and Supply Disruptions for Nonferrous Metals, Petroleum-Based Raw Materials and Building-Material Inputs
First written in FY2017. 10 of 26 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
Nihon Kagaku Sangyo moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2022: 40 of 58 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Although personnel expenses, logistics costs, and other costs increased, segment profit expanded overall as a result of active efforts to raise selling prices and reduce production costs.」
Amid continuing risks from higher raw material prices and costs, higher unit selling prices and lower production costs led to increased profit in the chemicals business. - FY2026-H1MitigatedAnnual report
「Higher sales volumes in the domestic market and sharp increases in the prices of some nonferrous metals contributed to increases in sales and profit.」
Sharp increases in the prices of some nonferrous metals, together with higher sales volumes, contributed to increases in sales and profit, and the impact of falling prices was mitigated during the interim period. - FY2025MitigatedAnnual report
「In response to this risk, we are promoting the use of recycled raw materials and creating new technologies and products.」
In response to the risks of increased demand for metals and soaring raw material costs associated with decarbonization and EV demand, the use of recycled raw materials and the creation of new technologies and products were identified as countermeasures. - FY2025-H1MitigatedAnnual report
「Higher sales volumes resulting from the recovery in domestic-market demand and rising nonferrous metal prices contributed to higher sales.」
Rising nonferrous metal prices, together with higher sales volumes, contributed to increased sales, mitigating the previous impact of falling prices and lower unit selling prices. - FY2024-Q3RestatedAnnual report
「In addition, the decline in market prices for the principal nonferrous metals we handle caused lower unit selling prices, which also contributed to the decrease in sales. In terms of profit, we worked to improve manufacturing costs and expand the product mix toward higher-margin products in response to rising prices and falling demand, but operating profit declined because these measures could not fully offset the decline in demand.」
Lower unit selling prices caused by falling nonferrous metal prices and cost pressures from rising prices persisted, and the decline in demand could not be fully offset. - FY2024-Q2WorsenedAnnual report
「In addition, the decline in market prices for the principal nonferrous metals we handle caused lower unit selling prices, which also contributed to the decrease in sales. In terms of profit, we worked to improve manufacturing costs, expand the product mix toward higher-margin products and use management resources more efficiently in response to rising prices and falling demand, but operating profit declined due in part to lower sales volumes.」
The decline in nonferrous metal prices appeared as lower unit selling prices. Cost pressures from rising prices and weaker demand also persisted, continuing to affect profit. - FY2024-Q1WorsenedAnnual report
「In terms of profit, in addition to lower sales volumes of existing products and the impact of soaring raw material and component prices, operating profit was ¥576 million, down ¥613 million, or 51.6%, from the same quarter of the previous year.」
Sharp increases in raw material and component prices, together with lower sales volumes of existing products, emerged as a factor behind the substantial decline in operating profit. - FY2023WorsenedAnnual report
「Meanwhile, in terms of profit, in addition to lower sales volumes of existing products, we were unable to fully pass on soaring raw material, component and electricity costs to selling prices. Operating profit was ¥2,797 million, down ¥1,018 million, or 26.7%, from the previous fiscal year.」
Continued increases in raw material, component and electricity costs could not be fully passed on to selling prices, and the impact emerged over the full fiscal year as a decline in operating profit in the chemicals business. - FY2023-Q3WorsenedAnnual report
「In terms of profit, in addition to sluggish sales volumes, we were unable to fully pass on soaring raw material, component and electricity costs to selling prices. Operating profit was ¥2,263 million, down ¥521 million, or 18.7%, from the same quarter of the previous year.」
Continued increases in raw material, component and electricity costs could not be fully passed on to selling prices, and the impact has emerged as a decline in operating profit in the chemicals business. - FY2023-Q2WorsenedAnnual report
「In terms of profit, in addition to sluggish sales volumes, we were unable to fully pass on soaring raw material, component and electricity costs to selling prices. Operating profit was ¥1,670 million, down ¥152 million, or 8.3%, from the same quarter of the previous year.」
Continued increases in raw material, component and electricity costs could not be fully passed on to selling prices, and the impact has emerged as a decline in operating profit in the chemicals business. - FY2023-Q1WorsenedAnnual report
「In terms of profit, despite increases in raw material and component prices and other factors, operating profit was ¥1,190 million, up ¥160 million, or 15.6%, from the same quarter of the previous year.」
Sharp increases in raw material and component prices were specifically cited as an actual factor affecting profit, and upward price pressure continues. - FY2022-Q3WorsenedAnnual report
「In terms of profit, despite sharp increases in raw material and component prices, production and sales volumes, including contract processing, were recovering, and there were also benefits from higher nonferrous metal prices」
Although sharp increases in raw material and component prices actually occurred, benefits from higher nonferrous metal prices and other factors were described as supporting profit. - FY2022-Q1MitigatedAnnual report
「The core chemicals business did not reach pre-COVID-19 levels despite the recovery in the business environment described above, but the overall recovery trend in demand from the previous fiscal year remained unchanged. Mainly owing to higher selling prices resulting from the continued upward trend in nonferrous metal prices, net sales were ¥4,616 million, up ¥783 million, or 20.4%, from the same quarter of the previous year.」
The continued upward trend in nonferrous metal prices contributed to higher chemicals-business sales through increased selling prices. - FY2021MitigatedAnnual report
「From the third quarter onward, nonferrous metal prices rose significantly, and overall demand also began to recover」
The rise in nonferrous metal prices partially mitigated the impact of lower unit selling prices caused by the delayed price recovery. - FY2021-Q3MitigatedAnnual report
「The core chemicals business continued to operate in a difficult business environment, gradually resuming sales activities within certain constraints, including conducting business negotiations online. Against the backdrop of the previously mentioned recovery in the business environment and the upward trend in nonferrous metal prices, signs of a recovery in performance emerged in the third quarter, but」
Nonferrous metal prices began to trend higher, and signs of a recovery in performance emerged in the third quarter. The impact of lower unit selling prices caused by the delayed price recovery was partially mitigated, but the disclosure does not state that cumulative performance had fully recovered. - FY2021-Q1RestatedAnnual report
「The recovery in market prices for the principal nonferrous metal salts was delayed, resulting in lower linked selling prices」
The delayed recovery in nonferrous metal prices continues to affect results through lower unit selling prices. - FY2020WorsenedAnnual report
「In addition to lower unit selling prices resulting from the delayed recovery in market prices for nonferrous metals, broad-based demand weakness progressed, particularly in information technology-related and automotive markets」
In addition to lower unit selling prices resulting from the delayed recovery in nonferrous metal prices, broad-based demand weakness was evident not only in information technology-related markets but also in automotive markets. - FY2020-Q3RestatedAnnual report
「In addition to lower unit selling prices resulting from the delayed recovery in market prices for nonferrous metals, broad-based demand weakness, particularly in information technology-related markets, continued」
Lower unit selling prices resulting from the delayed recovery in nonferrous metal prices and weaker demand continued to affect results, as in the previous quarter. - FY2020-Q2WorsenedAnnual report
「In addition to lower unit selling prices resulting from the delayed recovery in market prices for nonferrous metals, the decline in demand, particularly in information technology-related markets, also continued,」
The delayed recovery in nonferrous metal prices continued to appear as lower unit selling prices, compounded by weaker demand in information technology-related markets. - FY2020-Q1WorsenedAnnual report
「In addition to lower unit selling prices resulting from the delayed recovery in market prices for nonferrous metals, the decline in demand, particularly in information technology-related markets, also continued,」
The delayed recovery in nonferrous metal prices actually appeared as lower unit selling prices, and the impact of raw material price volatility has emerged in a negative direction. - FY2019-Q3MaterialisedAnnual report
「In addition, market prices for nonferrous metals, which contributed to the increase in sales through the second quarter, began to trend lower from the latter half of the second quarter,」
Nonferrous metal prices began to trend lower from the latter half of the second quarter, and price volatility has emerged as an actual factor driving changes in sales. - FY2019-Q2RestatedAnnual report
「In the first half of the quarter, selling price increases and other benefits resulted from market prices for nonferrous metals, the principal raw materials, remaining generally high」
Higher nonferrous metal prices were reflected in higher selling prices, and the impact of raw material price volatility continues to appear in results. - FY2018RestatedAnnual report
「However, in addition to selling price increases accompanying higher market prices for nonferrous metals, contract processing of cathode materials for secondary batteries gradually moved into a full-scale production structure from October, resulting in net sales of ¥18,762 million, up ¥2,209 million, or 13.3%, year on year.」
Selling price increases accompanying higher nonferrous metal prices were reflected in results, and the impact of raw material price volatility continues to appear. - FY2018-Q3RestatedAnnual report
「In addition, selling prices were increased in line with higher market prices for nonferrous metals, the principal raw materials」
Higher nonferrous metal prices were reflected in higher selling prices, and the impact of raw material price volatility continues to appear in results. - FY2018-Q2MaterialisedAnnual report
「At サイアム・エヌケイエス社, profits declined due to higher raw material prices and the partial acceptance of fixed assets and personnel from ネクサス・エレケミック社, among other factors」
Higher raw material prices were specifically cited as a factor behind lower profits at the Thai subsidiary, demonstrating the impact of raw material price volatility. - FY2017First statedAnnual report
「Prices of nonferrous metals and petroleum-related raw materials used in the Chemicals business, and iron, stainless steel and aluminum used in the Building Materials business, can rise or fall sharply because of global supply and demand and speculative capital flows. This creates the risk that higher costs cannot be passed on in selling prices and that selling prices may decline before the impact of falling market prices is reflected.」
Sharp fluctuations in raw-material prices, an inability to pass through higher costs and supply disruptions resulting from concentrated sourcing are identified as business risks.