Risk of business performance volatility due to international market conditions for raw materials and other inputs and foreign exchange rates
First written in FY2018. 4 of 6 entries say "Reframed", first in FY2021. Latest entry: FY2026.
Nichia Steel Works moved to the "Worse" side of this theme in 2021, 2 years after the typical company in this theme (2019).
The whole theme swung hardest in 2024: 8 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In the steel industry, the overproduction and increased exports by Chinese steelmakers resulting from the slowdown in the Chinese economy remain an issue. In Japan, the continuing weakness in demand is being accompanied by the effects of sharply higher prices for primary and secondary raw materials.」
The risk related to market trends for raw materials and other inputs was updated to describe the specific situation of overproduction and increased exports by Chinese steelmakers, weak domestic demand and sharply higher prices for primary and secondary raw materials. - FY2025ReframedAnnual report
「In the steel industry, market conditions in Asia remain weak because Chinese steelmakers, facing declining domestic demand, are exporting large volumes of overproduced steel products. Raw-material prices remain high while product prices remain low. In addition, the U.S. administration has imposed tariff measures on steel trade, and moves concerning trade measures are expanding in countries including Japan.」
The risk related to market trends for raw materials and other inputs explicitly covers weak Asian market conditions and high raw-material prices alongside low product prices resulting from China’s overproduction and steel-product exports, as well as U.S. tariff measures and trade measures by other countries. - FY2024ReframedAnnual report
「In the steel industry, the gap between steel raw-material prices and international steel-product market conditions is widening. Steel raw-material prices are rising because India, whose economy is growing, is increasing its purchases of coking coal and China, which is experiencing overproduction, continues to sustain demand for iron ore. At the same time, steel-product market conditions in East Asia remain weak because China is increasing steel-product exports amid declining domestic demand.」
The risk related to market trends for raw materials and other inputs was described in terms of a specific divergence in market conditions, with steel raw-material prices rising while East Asian steel-product markets remain weak. - FY2021ReframedAnnual report
「Because the prices of raw materials used in the Group’s businesses are linked to market conditions for iron ore, scrap, zinc and other materials, trends in those markets may affect the Group’s earnings.」
The risk description was reorganized from a general statement covering international market conditions, foreign exchange rates and other factors to focus on specific raw-material markets, including iron ore, scrap and zinc. - FY2019RestatedAnnual report
「Because the prices of raw materials and other inputs used in the Group’s businesses are linked to international market conditions, international market conditions for raw materials and other inputs, foreign exchange rates and other market trends may affect the Group’s earnings.」
The risk of earnings volatility due to international market conditions for raw materials, foreign exchange rates and market trends continues to be identified. - FY2018First statedAnnual report
「Because the prices of raw materials and other inputs used in the Group’s businesses are linked to international market conditions, international market conditions for raw materials and other inputs, foreign exchange rates and other market trends may affect the Group’s earnings.」
The possibility that international market conditions for raw materials and foreign exchange rates may affect earnings is explicitly identified as a separate business and other risk.