Declining domestic construction demand and excess capacity in the electric arc furnace industry
First written in FY2016. 20 of 35 entries say "Restated". Latest entry: 2026-10-30.
No other company in this theme has enough history to compare yet.
- FY2026MaterialisedAnnual report
「Our Group's core business, the domestic steel business, faces a structurally excessive supply capacity due to the presence of numerous competing electric-arc-furnace steelmakers. Meanwhile, demand for construction steel is expected to continue declining due to delays in and revisions to construction projects resulting from labor shortages and work-style reforms at domestic construction sites, as well as soaring material prices and other factors.」
In addition to structural excess supply capacity, labor shortages, work-style reforms, and construction schedule delays and plan revisions caused by soaring material prices have become specific factors contributing to the decline in construction steel demand. - 2026-04-30WorsenedRevisions to earnings forecasts
「国内鉄鋼事業については、人手不足による施工能力の制約から、住宅部門、非住宅部門ともに、建設鋼材需要の低調な推移が予想される中、鉄スクラップ価格は上昇基調が続いています。」
人手不足による施工能力の制約を背景に、次期も住宅・非住宅の建設鋼材需要が低調に推移する見通しが示された。 - FY2026-H1RestatedAnnual report
「Domestic steel demand remained sluggish, as labor shortages at construction and logistics sites, delays and extensions to construction schedules caused by extreme heat, and frequent revisions to plans in response to rising material prices and other factors were observed.」
Domestic steel demand weakened against a backdrop of labor shortages at construction and logistics sites, delays and extensions to construction schedules caused by extreme heat, and rising material prices. No material change has been indicated in the risks themselves of a long-term contraction in domestic construction demand and excess supply capacity. - FY2025-H1RestatedAnnual report
「In this business segment, domestic construction demand remained subdued. Although corporate capital investment and public investment continued steadily, demand was affected by higher material prices, labor shortages and work-style reforms at construction and logistics sites, and delays and extensions to construction periods caused by exceptionally hot weather.」
Domestic construction demand remained sluggish due to rising material prices, labor shortages, work-style reforms and delays in construction schedules caused by extreme heat, despite continued corporate capital investment and public investment. No material change has been indicated in the risks themselves of a long-term contraction in domestic construction demand and excess supply capacity in the electric-arc-furnace steel industry. - FY2024-Q3RestatedAnnual report
「Construction demand in the residential sector remained weak due to persistently high construction costs and other factors, while resilient corporate capital investment supported construction demand in the non-residential sector」
Construction demand in the residential sector remained weak, while the non-residential sector was supported by capital investment. No material change has been indicated in the risks themselves of a long-term contraction in domestic construction demand and excess supply capacity in the electric-arc-furnace steel industry. - FY2024-Q2RestatedAnnual report
「In this business segment, domestic construction demand remained solid, and product shipments totaled 789,000 tonnes, an increase of 15,000 tonnes from the same period of the previous year.」
Domestic construction demand remained resilient and product shipments increased. No material change has been indicated in the long-term risk of declining domestic construction demand itself. - FY2024-Q1MitigatedAnnual report
「In this business segment, as domestic construction demand remained firm, product shipments totaled 409,000 tonnes, an increase of 4,000 tonnes from the same period of the previous year.」
Domestic construction demand remained firm and product shipments increased year on year, indicating some easing of the recent risk of weak demand. - FY2023RestatedAnnual report
「Our Group's core business, the domestic steel business, faces a structurally excessive supply capacity due to the presence of numerous competing electric-arc-furnace steelmakers. Meanwhile, against the backdrop of a mature Japanese economy with a declining population, substantial long-term growth in domestic public works and private-sector construction demand appears unlikely, and demand for deformed bars, our Group's mainstay product, is likewise expected to decline.」
We continue to disclose the structural excess supply capacity in Japan's electric-arc-furnace steel industry and the long-term risk of declining domestic construction demand and demand for deformed bars against the backdrop of population decline. - FY2023-Q3RestatedAnnual report
「During the third quarter of the current consolidated fiscal period, domestic construction steel demand remained sluggish despite expectations for autumn demand, as customers continued hand-to-mouth purchasing due to expectations that product prices would decline amid softer steel scrap market conditions.」
Domestic demand for construction steel remained sluggish against a backdrop of expectations for lower product prices due to softer steel scrap market conditions and customers' hand-to-mouth purchasing. - FY2023-Q2RestatedAnnual report
「In the domestic construction steel market, demand remained at a low level because steel scrap prices, the principal raw material, trended downward from late April through mid-August, prompting customers to continue making hand-to-mouth purchases in anticipation of lower prices.」
Customers continued hand-to-mouth purchasing during the decline in steel scrap prices, and domestic demand for construction steel remained at a low level. - FY2023-Q1RestatedAnnual report
「In Japan's construction steel market, end users adopted a wait-and-see stance, and demand remained sluggish.」
Sluggish domestic demand for construction steel continues, and the risk of weak demand has persisted since the previous fiscal year. - FY2022RestatedAnnual report
「Against the backdrop of a mature Japanese economy with a declining population, substantial long-term growth in domestic public works and private-sector construction demand appears unlikely, and demand for deformed bars, our Group's mainstay product, is likewise expected to decline.」
The medium- to long-term risk of contraction in domestic construction demand driven by population decline continues to be recognized. - FY2022-Q3RestatedAnnual report
「In the domestic construction steel market, a major source of demand for our Group, demand failed to gain momentum and remained weak and flat during the third quarter of the current consolidated fiscal period, even after the state of emergency was lifted. In addition, steel scrap prices surged again after the end of September, and the trading spread, the difference between product prices and raw material prices that generates profit, narrowed year on year, resulting in a continued challenging business environment.」
Weak domestic construction demand and surging steel scrap prices continue, and the challenging business environment risk for the domestic steel business persists. - FY2022-Q2RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, the business environment remained challenging as construction demand lacked momentum, while steel scrap prices, after temporarily entering a correction phase, subsequently reversed and remained high.」
Weak domestic construction demand and high raw material prices continue, and the challenging business environment risk for the domestic steel business persists. - FY2022-Q1RestatedAnnual report
「In the domestic construction steel market, a major source of demand for our Group, the business environment remained challenging as construction demand lacked momentum while steel scrap prices, which had been trending upward since the second half of the previous fiscal year, continued at high levels.」
Construction demand in Japan lacked momentum, while steel scrap prices remained high. - FY2021WorsenedAnnual report
「Against the backdrop of a mature Japanese economy with a declining population, substantial long-term growth in domestic public works and private-sector construction demand appears unlikely, and demand for deformed bars, our Group's mainstay product, is likewise expected to decline.」
The decline in domestic construction demand was identified not only as cyclical weakness but also as a long-term risk of demand contraction driven by population decline. - FY2021-Q3RestatedAnnual report
「In Japan's ordinary steel electric arc furnace industry, to which the Group belongs, demand for domestic construction steel remained at a low level amid uncertainty about the outlook due to the impact of COVID-19 and other factors.」
Domestic demand for construction steel remains at a low level, and the risk of weak demand continues. - FY2021-Q2RestatedAnnual report
「In Japan's construction steel market, to which the Group belongs, steel demand remained weak amid uncertainty about the outlook.」
Weak domestic demand for construction steel continues, and the risk of weak demand has persisted since the previous quarter. - FY2021-Q1WorsenedAnnual report
「In the domestic construction steel market, a major source of demand for our Group, customers continued to take a wait-and-see approach and make hand-to-mouth purchases as steel scrap prices remained low, resulting in generally weak market conditions.」
The domestic construction steel market was generally weak, owing to the previous period's sluggish conditions and customers' wait-and-see approach and hand-to-mouth purchasing against a backdrop of low steel scrap prices. - FY2020-Q3RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand for steel products for both the construction and civil engineering sectors continued to lack momentum.」
Although sluggish domestic demand for construction steel continues, there is no indication of new deterioration from the previous quarter, and the risk of weak demand remains. - FY2020-Q2WorsenedAnnual report
「However, as market prices for steel scrap softened, domestic demand for steel remained in a wait-and-see phase, and the domestic steel market remained weak.」
Based on the description of domestic demand for construction steel as firm in the previous quarter, the latest disclosure indicated that domestic steel demand had deteriorated into a wait-and-see phase and that domestic steel market conditions had weakened. - FY2020-Q1RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand in both the construction and civil engineering sectors remained firm.」
Domestic demand for construction steel remains firm, and there is no indication that the risk of weak demand, which had been identified through the previous quarter, deteriorated further. - FY2019-Q3RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand in both the construction and civil engineering sectors remained firm」
Domestic demand for construction steel remains firm, and the previous weakness in demand continues to show some easing. - FY2019-Q2MitigatedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand in both the construction and civil engineering sectors remained firm and steady.」
Domestic demand for construction steel progressed from the previous sluggish, sub-full-recovery level to a firm and steady trend, and the risk of weak demand was eased to some extent. - FY2018MitigatedAnnual report
「In the domestic construction steel market, a major source of demand for our Group, demand in both the building and civil engineering sectors was recovering, and product shipments increased.」
Domestic demand for construction steel was recovering, indicating some easing from the previous situation of sluggish demand without a full-fledged recovery. However, the risk of a medium- to long-term decline in demand continues to be recognized. - FY2018-Q3MitigatedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand in both the construction and civil engineering sectors was trending toward recovery, and the Group raised product prices. However, steel scrap prices, the raw material, rose further under the influence of demand for Chinese steel products, narrowing the selling-price spread, the difference between product prices and raw material prices, which is the source of profit.」
Demand for construction steel products in Japan shifted from the previous sluggish conditions and failure to achieve a full-scale recovery toward a recovery trend, indicating some mitigation of the risk of sluggish demand. However, margin pressure from rising raw material prices continues. - FY2018-Q2RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, there were signs of a recovery in demand in parts of both the construction and civil engineering sectors, but demand did not achieve a full-fledged recovery.」
Although there were signs of some recovery in demand for construction steel products in Japan, a full-scale recovery remained out of reach. - FY2018-Q1RestatedAnnual report
「In Japan's construction steel market, the Group's primary end market, there were signs of a recovery in demand in parts of both the construction and civil engineering sectors, but demand did not achieve a full-fledged recovery.」
Although there were signs of some recovery in demand for construction steel products in Japan, it did not reach a full-scale recovery, and the risk of sluggish demand persisted. - FY2017-Q3RestatedAnnual report
「In the construction steel market, the Group's primary end market, product demand in the third quarter continued to lack momentum」
It was reported that weak demand for construction steel products in Japan continued into the third quarter, with the already materialised risk of sluggish demand persisting. - FY2017-Q2MaterialisedAnnual report
「In Japan's construction steel market, the Group's primary end market, demand in both the construction and civil engineering sectors remained sluggish and did not achieve a full-fledged recovery.」
Weak domestic construction demand was confirmed for a second consecutive quarter and was described as having yet to achieve a full-scale recovery. - FY2017-Q1MaterialisedAnnual report
「Demand in both the construction and civil engineering sectors of the construction steel market, the Group's primary end market, remained sluggish.」
The decline in domestic construction demand, identified as a risk in the previous fiscal year, has emerged in actual market conditions during the quarter. - FY2016First statedAnnual report
「Demand for construction steel products in Japan is expected to remain firm for the time being, but the ordinary steel electric arc furnace industry has structurally excess capacity, creating a risk that overproduction and excess sales could lead to lower selling prices.」
The company identifies the medium- to long-term decline in domestic construction demand and the impact of excess capacity on sales volumes and selling prices as risks.