Risk of Concentration of Raw Material Procurement in China and Other Countries
First written in FY2020. 2 of 4 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Nippon Crucible moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 25 of 36 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「If surging and persistently high raw material prices and significant yen depreciation continue, the group's business performance could decline depending on progress in price revisions based on customer understanding.」
The company continues to disclose the risks of surging and persistently high raw material prices and significant yen depreciation, including procurement problems caused by the situation in the Middle East and geopolitical risks. Price revisions, diversification of procurement sources and foreign-exchange hedging are identified as countermeasures. - FY2022WorsenedAnnual report
「If surging and persistently high raw material prices and significant yen depreciation continue, the group's business performance could decline depending on progress in price revisions based on customer understanding.」
The company identifies downside risk if surging and persistently high raw material prices and significant yen depreciation materialize. It plans to respond through diversification of procurement sources, raw material research, price revisions and foreign-exchange hedging. - FY2021MitigatedAnnual report
「To avoid concentrating procurement sources in particular countries such as China, we continuously seek suppliers around the world according to the type of raw material. We will continue to conduct broad research and evaluation of diverse raw materials to mitigate the risk.」
In response to the risk of concentrating procurement in China and other countries, the company is diversifying procurement sources and researching and evaluating diverse raw materials. - FY2020First statedAnnual report
「Our group procures the raw materials required to manufacture its mainstay refractory products directly or through trading companies from China and other countries around the world. Because the proportion of domestic raw materials is not high, any procurement problems in our current import source countries could affect our group's business performance.」
The company discloses as a new risk its dependence on raw material procurement from overseas, including China, and the potential impact on business performance of procurement disruptions in importing countries.