Procurement environment risk for recycled materials and products
First written in FY2016. 8 of 24 entries say "Mitigated", first in FY2018-Q3. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「The Group is working to reduce these risks by strengthening its collection system, diversifying its procurement schemes and creating value from all procured resources.」
While identifying lower raw-material generation and competition for collection as continuing risks, the company specified strengthening its collection system, diversifying procurement schemes and creating value from all procured resources as countermeasures. - FY2026-H1MitigatedAnnual report
「Sales efforts targeting major manufacturers were strengthened, promoting the procurement of raw materials.」
Regarding the raw-material procurement environment, stronger sales efforts targeting major manufacturers advanced the securing of raw materials and responses to procurement constraints. - FY2025-H1MaterialisedAnnual report
「However, in the metal raw-materials trading business, shipment volume declined due to the impact of falling scrap prices and foreign-exchange movements, resulting in lower revenue and earnings.」
Falling raw-material prices and foreign-exchange movements materialized as lower shipment volume and lower revenue and earnings in the global trading business. - FY2024MitigatedAnnual report
「Higher recovery volumes of gold- and silver-bearing residues, accompanying increased incineration ash collection, and strong cleanup and demolition work contributed to earnings.」
While challenges remained in the procurement environment for metal scrap and other materials, increased incineration ash collection and wide-area cleanup and demolition work supplemented the resources handled. - FY2024-Q3MaterialisedAnnual report
「However, the procurement environment for metal scrap remained weak, and inbound volume fell below the same period of the previous year. In addition, depreciation associated with new equipment and the operation of a new plant, as well as temporary relocation costs, weighed on earnings.」
The weakness in the metal scrap procurement environment materialized as inbound volume falling below the same period of the previous year. Profitable materials such as incineration ash and the consolidation of Nitto Kako into the Group supplemented earnings. - FY2024-Q2Supplementing handling volume with wide-area projectsAnnual report
「Metal scrap handling volume fell below the same period of the previous year because fewer demolition projects arose near collection centers, reducing the amount of demolition scrap handled as procurement material. In addition, depreciation and other expenses associated with the operation of a new plant weighed on earnings. Meanwhile, strong wide-area demolition and cleanup operations, along with higher inbound volumes of high-margin products, increased earnings.」
While demolition scrap handling volume near collection centers declined, higher inbound volumes from wide-area demolition and cleanup operations and high-margin products supplemented earnings. - FY2024-Q1MaterialisedAnnual report
「With end-of-life vehicle volumes remaining sluggish, the recovery in domestic manufacturing production slow and metal scrap generation stagnant, handling volume fell below the previous period.」
The continued weakness in end-of-life vehicle volumes and domestic manufacturing production materialized as handling volume in the resource recycling business falling below the previous period. - FY2023-Q3WorsenedAnnual report
「As the generation of metal scrap and other materials declined due to a decrease in end-of-life vehicles and a downturn in domestic manufacturing production, proactive sales activities kept handling volume at the same level as in the same period of the previous year. However, profitability declined due to the deterioration in the procurement environment accompanying the lower generation volume.」
Lower end-of-life vehicle volumes and domestic manufacturing production deteriorated raw-material generation and the procurement environment. Although sales activities maintained handling volume at the same level as in the same period of the previous year, the impact emerged as lower profitability. - FY2023-Q2MaterialisedAnnual report
「In addition to a decline in the number of end-of-life vehicles generated, handling volume decreased as utilization rates fell during the first quarter of the consolidated fiscal year due to temporary equipment breakdowns and other factors.」
Raw-material and handling volumes declined due to a decrease in end-of-life vehicles generated, compounded by lower utilization rates caused by equipment breakdowns. Constraints on raw-material procurement and processing volume materialized as an actual cause of lower revenue. - FY2023-Q1MitigatedAnnual report
「Meanwhile, an increase in orders for wide-area cleanup and demolition work contributed to earnings.」
The company stated that the increase in orders for wide-area cleanup and demolition work contributed to earnings by helping secure raw materials and handling volume. - FY2022-Q1RestatedAnnual report
「In addition to the continued increase in iron scrap handling volume from large demolition projects since the previous consolidated fiscal year, higher equity-method investment income contributed to higher revenue and earnings.」
The company reconfirmed that the increase in iron scrap handling volume from large demolition projects has continued. - FY2021MitigatedAnnual report
「Metal scrap prices rose, and handling volumes also exceeded the previous year, partly due to the impact of iron scrap procured from large demolition projects.」
Higher metal prices and procurement from large demolition projects lifted handling volume above the previous year, indicating an improvement in the raw-material procurement environment during the fiscal year. - FY2021-Q3RestatedAnnual report
「The capacity constraints at final disposal sites caused by the return of waste to domestic channels during the previous fiscal year were eased by a decline in waste generation due to the COVID-19 pandemic, and the Group’s processing facilities also operated stably without restricting waste intake.」
The company reconfirmed that capacity constraints and intake restrictions at final disposal sites have eased and that processing facilities have continued to operate stably without intake restrictions. - FY2021-Q2RestatedAnnual report
「The capacity constraints at final disposal sites caused by the return of waste to domestic channels during the previous fiscal year were eased by a decline in waste generation due to the COVID-19 pandemic, and the Group’s processing facilities also operated stably without restricting waste intake.」
The company reconfirmed the conditions in the previous quarter, when capacity constraints and intake restrictions at final disposal sites were eased and operations remained stable without intake restrictions. - FY2021-Q1MitigatedAnnual report
「The capacity constraints at final disposal sites caused by the return of waste to domestic channels during the previous fiscal year were eased by a decline in waste generation due to the COVID-19 pandemic, and the Group’s processing facilities also operated stably without restricting waste intake.」
The capacity constraints and intake restrictions at final disposal sites that had emerged during the previous fiscal year were eased by lower waste generation, and operations remained stable during the quarter without intake restrictions. - FY2020-Q3MaterialisedAnnual report
「Amid a challenging environment in which iron and nonferrous metal scrap prices remained weak and treatment fees at final disposal sites and elsewhere increased, with intake restrictions also arising, the Group secured earnings by adjusting raw-material acceptance prices to reflect higher treatment fees after intermediate processing.」
Higher treatment fees at final disposal sites and elsewhere and restrictions on waste intake have continued. The Group also secured earnings through adjustments to raw-material acceptance prices. - FY2020-Q2MaterialisedAnnual report
「Although the Group’s handling volume declined after it restricted waste intake, it secured earnings as price adjustments to reflect higher treatment fees at final disposal sites and elsewhere after intermediate processing progressed.」
Intake restrictions at final disposal sites and elsewhere materialized as a decline in the Group’s waste intake and handling volume. Meanwhile, the Group secured earnings through price adjustments reflecting higher treatment fees. - FY2020-Q1Higher transaction volumes alongside intake restrictionsAnnual report
「Although iron and nonferrous metal scrap prices remained weak in a declining market, and the environment became challenging due to higher waste-treatment fees at final disposal sites and elsewhere, as well as intake restrictions, resulting from the return of waste to domestic channels, the Group increased its handling volume of fee-based waste materials, mainly waste plastics,」
While waste-treatment fees increased and intake restrictions arose, the handling volume of fee-based waste materials, mainly waste plastics, increased. The deterioration in the procurement and processing environment and the expansion in handling volume are both noted. - FY2019-Q3RestatedAnnual report
「Against this backdrop, domestic collection and production in the metals and plastics businesses remained solid, although」
Domestic collection and production in the metals and plastics businesses remained solid, reconfirming the previous conditions in the domestic procurement environment. - FY2019-Q1RestatedAnnual report
「In the domestic metals and plastics businesses, collection and production of recycled resources at factories remained firm, but export transactions were sluggish due to the previously mentioned deterioration in the trading environment and shipment delays caused by a major typhoon, among other factors.」
Collection and production of recycled resources at domestic factories remained firm, reconfirming the improvement in the procurement environment. Meanwhile, export transactions were affected by the trading environment and typhoons. - FY2018MitigatedAnnual report
「Against this backdrop, collection and production of recycled resources at factories and export transactions, taking advantage of upswings in the respective markets, remained strong and made a significant contribution to earnings.」
Against a backdrop of rising markets, collection and production of recycled resources at factories remained strong, mitigating the adverse impact that deterioration in the raw-material procurement environment had had on performance during the fiscal year. - FY2018-Q3MitigatedAnnual report
「Against this backdrop, collection and production of recycled resources at factories, exports and sales of used vehicles and used auto parts, taking advantage of upswings in the respective markets, remained strong and made a significant contribution to earnings.」
Collection and production of recycled resources at factories reportedly remained strong, mitigating the adverse impact that deterioration in the raw-material procurement environment had had on performance during the period. - FY2017RestatedAnnual report
「Generation may decline due to trends in factory production, consumption of finished products and other factors. Such declines in raw materials and products could affect transaction volumes and production facility utilization rates, and may affect the performance and financial position of the Group.」
The company reconfirmed the procurement environment risk that lower waste generation could affect transaction volumes and facility utilization rates. - FY2016First statedAnnual report
「Falling metal prices reduced liquidity in recycled resources, resulting in sluggish collection」
The company identifies as risks a decline in waste generation due to Japan’s shrinking population and the overseas relocation of manufacturing, as well as competition within the industry to secure raw materials, and also reported sluggish collection during the period.