Risk of fluctuations in economic conditions, steel demand, product prices and raw material prices

「Looking ahead, a substantial recovery in steel demand is expected to remain difficult. In addition, the operating environment is expected to remain uncertain and difficult because of increasingly heightened geopolitical risks, including concerns over stable energy supplies resulting from heightened tensions in the Middle East, and the possibility that U.S. trade policy could have a significant impact not only on steel supply and demand but also on the global economy.」

「The environment surrounding the Group became difficult as labor shortages in the construction industry, its main customer industry, reduced construction capacity amid extremely hot weather, while construction plans were repeatedly revised because of surging material prices and labor costs, resulting in a substantial decline in demand for steel products for construction.」

「Looking ahead, a substantial recovery in steel demand is expected to remain difficult, while the possibility that U.S. trade policy could have a significant impact not only on steel supply and demand but also on the global economy is expected to result in an uncertain and difficult operating environment.」

「The environment surrounding the Group remained difficult. Although electricity costs were under control, iron scrap prices, the main raw material, remained high. In addition, construction demand for steel products continued to be sluggish because of delays in construction schedules and other factors, causing steel market conditions to weaken and narrowing the metal spread between product selling prices and iron scrap prices. Rising logistics and labor costs also contributed to the difficult business environment.」

「The Group faced a difficult operating environment because prices of iron scrap, the main raw material, and auxiliary materials such as ferroalloys remained high, while electricity costs in the region rose substantially.」

「Demand for steel products for construction declined as progress on construction projects stalled because of a decrease in new housing starts and labor shortages in the construction-related industries.」

「Although construction investment was brisk in some industries and regions, the start and progress of construction projects were delayed because of labor shortages and other issues in the construction-related industries. As steel demand remained sluggish overall, sales volumes also remained weak.」

「In the industries related to the Group's business, demand for deformed bars, the main product, struggled to grow because of stalled progress on construction projects, and sales volumes remained sluggish. From a manufacturing-cost perspective, energy prices surged because of the prolonged Russia-Ukraine situation and the weaker yen, causing electricity costs to rise substantially and resulting in a difficult business environment.」

「In the industries related to the Group's business, prices of iron scrap, the main raw material, and auxiliary materials such as ferroalloys had eased from their previous levels but remained high. Energy costs also rose substantially, significantly affected by surging resource prices and the weaker yen, resulting in a difficult operating environment.」

「During the nine-month period of the current fiscal year, Japan's economy showed signs of a gradual recovery, but the pressure weighing on economic activity intensified because of globally rising prices, monetary tightening and other factors, and the outlook remained uncertain.」

「In addition to sluggish demand for deformed bars, the Group's main product, the cooling of China's domestic construction market under its zero-COVID policy affected the supply and demand of steel products in East Asia, leaving demand conditions in South Korea, the Group's main export market, difficult. In addition, energy costs, including electricity charges, and prices of various materials such as ferroalloys rose substantially because of Russia's invasion of Ukraine and the weaker yen.」

「In the industries related to the Group's business, domestic construction demand lacked momentum, while East Asian steel market conditions deteriorated because of China's lockdowns and other factors, and new export inquiries remained scarce. As for purchased-material prices, iron scrap prices were on a downward trend globally, whereas prices of various materials such as ferroalloys were trending upward, significantly affected by the weaker yen. In addition, various energy costs, including electricity charges, rose substantially, resulting in a difficult business environment.」

「Looking ahead, the economy is expected to move toward a gradual recovery as COVID-19 vaccinations advance further and the government's economic support measures take effect. However, uncertainty in overseas economies stemming from Russia's invasion of Ukraine is a concern, and the outlook is expected to remain uncertain. The Group's related industries are also affected by this economic environment: although an increase in demand for steel products is anticipated, concern remains over rising prices for iron scrap, ferroalloys, refractory materials and other materials, as well as energy prices.」

「Although domestic construction demand remained generally sluggish, the Group worked to raise product selling prices and secure sales volumes, including through exports of deformed bars. From a cost perspective, it worked to reduce various input coefficients, but iron scrap prices, which had remained high, surged further in the third quarter, while rising crude oil and other energy prices forced a substantial increase in costs, resulting in a difficult business environment.」

「In the industries related to the Group's business, domestic construction demand remained generally sluggish, while iron scrap prices, the main raw material, remained high. Prices of various materials such as ferroalloys also surged as global demand recovered rapidly and supply declined in some producing countries, resulting in a difficult business environment.」

「Although domestic construction demand remained generally sluggish, prices of iron scrap, the main raw material, and various materials such as ferroalloys surged because overseas demand remained strong, forcing a substantial increase in costs and resulting in difficult conditions.」

「In the industries related to the Group's business, construction demand remained sluggish. Although the Group worked to secure product sales volumes and maintain product selling prices, profitability deteriorated as iron scrap prices, the main raw material, surged at year-end and remained high, resulting in a difficult operating environment.」

「In the industries related to the Group's business, demand for steel products showed signs of recovery from the decline caused by COVID-19, but conditions became difficult because of a sharp rise in iron scrap prices, the main raw material.」

「In the industries related to the Group's business, demand for steel products declined due in part to construction delays caused by the impact of COVID-19. From a cost perspective, the price of iron scrap, the main raw material, shifted from a declining phase to a rising phase, resulting in an unpredictable situation.」

「In the industries related to the Group's business, the decline in construction demand continued, while some construction projects were delayed due to the impact of COVID-19. Although lower prices for auxiliary raw materials and energy had a positive effect, the price of iron scrap, the main raw material, shifted from a declining phase to a rising phase, resulting in an unpredictable situation.」

「In the industries related to the Group's business, construction demand remained sluggish. However, profitability improved as the price of iron scrap, the main raw material, remained weak from the beginning of the fiscal year and prices for some materials also began to decline, resulting in a relatively resilient operating environment.」

「In the industries related to the Group's business, construction demand remained low and sales volumes declined. However, profitability improved significantly as the Group worked to maintain selling prices and the price of iron scrap, the main raw material, fell further.」

「In the industries related to the Group's business, construction demand remained low. Although the price of iron scrap, the main raw material, fell significantly, profitability improved as the Group worked to maintain product selling prices against a backdrop of rising prices for various materials and energy.」

「In the company group's related industries, construction demand had begun to decline and orders were lower than in the same quarter of the previous year. Although steel scrap prices, the main raw material, had fallen, the environment remained challenging because prices of other materials and energy remained high.」

「In the company group's related industries, construction demand remained firm, but the environment was challenging as prices of other materials and transportation costs rose in addition to persistently high prices for steel scrap, the main raw material.」

「During the nine months ended 31 December, the Japanese economy remained on a gradual recovery path, supported by improving corporate earnings and employment and income conditions. However, the outlook remained uncertain amid concerns about the impact of escalating US-China trade friction on the global economy. In the company group's related industries, domestic steel demand remained firm, but costs rose substantially as steel scrap prices, the main raw material, remained high and prices of other materials soared, resulting in a continued challenging environment.」

「During the six months ended 30 September, the Japanese economy remained on a gradual recovery path as corporate earnings and employment and income conditions continued to improve. However, the outlook remained uncertain amid concerns about uncertainty in overseas economies and volatility in financial and capital markets. In the company group's related industries, construction demand remained firm, but the environment remained challenging due in part to substantial cost increases, including persistently high prices for steel scrap, the main raw material, and soaring prices for other materials.」

「During the three months ended 30 June, the Japanese economy remained on a gradual recovery path, supported by improving corporate earnings and employment conditions, although the outlook remained uncertain due to concerns about the United States' protectionist trade policies. In the company group's related industries, domestic construction demand remained generally firm. However, costs rose substantially as prices of steel scrap, the main raw material, remained high and prices of ferroalloys, electrodes, refractories and other materials increased significantly.」

「In the company group's related industries, efforts were made to improve product selling prices amid rising prices for steel scrap, the main raw material, and other materials. However, price improvements commensurate with costs did not progress, resulting in a challenging environment.」

「In the industries related to our Group, we worked to improve selling prices amid a substantial increase in prices for iron scrap, our principal raw material, and other materials, but the operating environment became challenging as price improvements failed to keep pace with rising costs.」

「During the six months ended 30 September, the Japanese economy remained on a gradual recovery path as employment conditions continued to improve and signs of recovery spread to personal consumption. However, concerns about rising geopolitical risks and the impact of tighter environmental regulations in China persisted, leaving domestic and overseas economic trends uncertain. The company group's related industries also faced a challenging environment. Although efforts were made to secure product sales volume and improve product selling prices amid sluggish construction demand, prices of steel scrap, the main raw material, and ancillary materials soared.」

「In the industries related to our Group, we worked to secure sales volumes and improve selling prices amid sluggish construction demand, but the operating environment remained challenging, with prices for iron scrap, our principal raw material, and auxiliary materials surging.」

「In the company group's related industries, efforts were made to improve product selling prices amid substantial fluctuations in the price of steel scrap, the main raw material. However, steel demand remained sluggish due to delays in the start of construction projects, and price improvements did not progress, resulting in a challenging environment.」

「During the nine months ended 31 December, the Japanese economy remained on a gradual recovery path as employment and income conditions improved, although the outlook remained uncertain amid concerns about the impact of slower economic growth in China and emerging economies. The company group's related industries also faced a challenging environment. Although efforts were made to improve product selling prices amid sharp fluctuations in steel scrap prices, the main raw material, price improvements did not progress because steel demand remained sluggish.」

「Although efforts were made to improve product selling prices amid sharp fluctuations in the price of steel scrap, the main raw material, price improvements did not progress because steel demand remained sluggish, resulting in a challenging environment.」

「The company group's related industries also faced a challenging environment, as steel demand remained sluggish due to construction delays and delays in project starts, while prices of steel scrap, the main raw material, fluctuated sharply.」

「The ordinary steel electric arc furnace industry to which the company group belongs is a cyclical industry whose performance is susceptible to economic fluctuations. Fluctuations in steel demand, particularly demand arising from public investment, private-sector capital investment and residential construction, as well as market prices for products, could have a significant impact on the performance and financial condition of the company group. Prices of the main raw materials consumed by the company group, including steel scrap, ferroalloys and fuel, may fluctuate substantially in response to international economic conditions.」