Difficulty sourcing raw materials, tight supply and demand, and soaring prices
First written in FY2016. 10 of 22 entries say "Materialised", first in FY2018-Q2. Latest entry: 2026-08-10.
Shinagawa Refra moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 35 of 55 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- FY2026WorsenedAnnual report
「In addition, supply risks for petroleum-derived raw materials attributable to the situation in the Middle East are increasing.」
In addition to the existing risks of difficulty procuring raw materials and soaring prices, it newly specifies the supply risk for petroleum-derived raw materials attributable to the situation in the Middle East. - FY2024RestatedAnnual report
「On the procurement side, we will continue to promote the substitution of alternative raw materials, including recycled materials, and the diversification of procurement sources to reduce raw material costs and address procurement risks.」
It reconfirms the policy of continuing to substitute alternative raw materials and diversify procurement sources in response to the risks of difficulty procuring raw materials and soaring prices. - FY2024-Q3RestatedAnnual report
「Selling price revisions in response to persistently high raw material costs and soaring fuel and electricity costs」
It reconfirms that raw material costs remain high and fuel and electricity costs continue to soar, and that selling price revisions are being pursued in response. - FY2024-Q2RestatedAnnual report
「Improved spreads through selling price revisions in response to soaring raw material, fuel, and electricity costs, and through an improved sales mix」
Raw material and fuel costs and electricity costs have continued to rise, and measures involving selling price revisions and improvements to the sales mix are being pursued in response. - FY2024-Q1MaterialisedAnnual report
「The implementation of selling price revisions in response to soaring raw material, fuel, and electricity costs」
Raw material and fuel costs and electricity costs actually soared, leading to efforts to revise selling prices in response. - FY2023-Q3RestatedAnnual report
「Under these circumstances, the group's operating results for the nine months ended the third quarter of the current fiscal year were revenue of ¥94,349 million, up 14.2% year on year, mainly because increases in refractory raw material prices, which were on an upward trend, were progressively passed through to selling prices.」
It reconfirms that refractory raw material prices remain on an upward trend and that increases are being passed through to selling prices. - FY2023-Q2RestatedAnnual report
「Revenue was ¥61,064 million, up 16.4% year on year, mainly because increases in refractory raw material prices, which were on an upward trend, were progressively passed through to selling prices.」
It reconfirms that refractory raw material prices remain on an upward trend and that increases are being passed through to selling prices as a countermeasure. - FY2023-Q1RestatedAnnual report
「Revenue was ¥29,661 million, up 14.8% year on year, mainly because increases in refractory raw material prices, which were on an upward trend, were progressively passed through to selling prices.」
It reconfirms that refractory raw material prices remain on an upward trend and that increases are being passed through to selling prices in response. - FY2022WorsenedAnnual report
「At the same time, our group faces significant uncertainty on the procurement side, including shortages of fused refractory raw materials due to power restrictions and other measures in China, and a sharp rise in prices for lithium-based raw materials accompanying the expansion of global EV demand. We are working to mitigate these risks by bringing forward inventory procurement and taking other measures.」
Specific procurement risks have emerged, including shortages of raw material supplies due to power restrictions in China and a sharp rise in lithium-based raw material prices accompanying expanding EV demand, and we are responding by bringing forward inventory procurement. - FY2021RestatedAnnual report
「In recent years, inexpensive, high-quality refractory raw materials made in China have come to account for more than half of the raw materials purchased, and we have therefore been developing alternative sources of supply.」
It reconfirms the dependence on specific countries and suppliers for raw materials and the risk of soaring prices, indicating that materials made in China account for more than half of purchased raw materials. - FY2019-Q3MaterialisedAnnual report
「In the refractories and related products business, sales increased 19.2% year on year to ¥70,845 million through higher sales volumes and the pass-through to selling prices of higher raw material costs, while segment profit rose 65.2% to ¥7,707 million as cost reductions progressed.」
It explains that refractory raw material prices have continued to rise and that the increases have been passed through to selling prices in response. - FY2019-Q2MaterialisedAnnual report
「In the refractories and related products business, sales increased 17.2% year on year to ¥45.2 billion and segment profit rose 74.2% to ¥4,931 million, reflecting higher refractories sales volumes on steady crude steel production and expanded sales, as well as the pass-through to selling prices of higher refractory raw material costs.」
It explains that refractory raw material prices have continued to rise and that the increases have been passed through to selling prices in response. - FY2019-Q1MaterialisedAnnual report
「In the refractories and related products business, sales increased 16.1% year on year to ¥2,202.0 million and segment profit increased 59.9% to ¥227.6 million, due to higher sales volumes of refractories and the pass-through to selling prices of increases in raw material prices.」
Raw material prices actually rose, prompting efforts to pass the increase through to selling prices. While the risk of further price increases continues, it has appeared in the results for the quarter as higher revenue and higher profit. - FY2018MaterialisedAnnual report
「Operating profit was ¥6,049 million, down ¥294 million, or 4.7%, from the previous fiscal year, as the price spread for refractories, mainly for steelmaking, narrowed significantly due to a sharp rise in prices for refractory raw materials from China.」
It explains that the sharp rise in prices and tight supply and demand for refractory raw materials from China actually affected profit margins and operating profit, and that prices may continue to rise from the following fiscal year onward. - FY2018-Q3MaterialisedAnnual report
「Segment profit was adversely affected by soaring prices for imported refractory raw materials and imported refractory products, but increased revenue, mainly from high-value-added ceramic fibers, resulted in profit of ¥4,664 million, up 10.3%.」
It states that soaring prices for imported refractory raw materials and products adversely affected segment profit, indicating that raw material price risks and their impact on financial performance have continued. - FY2018-Q2MaterialisedAnnual report
「Meanwhile, in the refractories industry, tighter environmental regulations in China led to tight supply and demand for refractory raw materials and soaring raw material prices.」
It states that tight supply and demand for refractory raw materials and soaring prices actually occurred against the backdrop of tighter environmental regulations in China. - FY2016First statedAnnual report
「Some of the raw materials used by our group are available from only a limited number of manufacturers or regions, and may become difficult to procure for some reason, potentially disrupting production.」
It indicates that dependence on limited suppliers and production regions, tight supply and demand, and supply capacity constraints could adversely affect financial performance and financial condition.