Risk of earnings deterioration due to fluctuations in metal prices
First written in FY2016. 20 of 38 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2026.
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- FY2026Recovery in ferrous scrap prices alongside high nonferrous and precious metal pricesAnnual report
「Nonferrous and precious metal prices reached successive all-time highs for copper, gold and silver, among others, as the inflow of speculative funds driven by geopolitical risk and monetary policies in various countries coincided with emerging concerns about global supply.」
The average ferrous scrap price was ¥45,616/t, above the prior-period level, while copper, gold and silver reached successive all-time highs, resulting in divergent market conditions across resources. - FY2026-H1Nonferrous and precious metals remain high, with divergent trends by resourceAnnual report
「Nonferrous and precious metal prices remained at historically high levels, as the inflow of speculative funds driven by geopolitical risk and monetary policies in various countries coincided with emerging concerns about global supply. Prices for copper, gold and silver, among others, reached successive all-time highs.」
Metal markets were not uniform: copper, gold and silver reached successive all-time highs, while other resources continued to face oversupply. Conditions diverged by resource amid geopolitical factors, monetary policy and supply concerns. - FY2025-H1WorsenedAnnual report
「Prices then remained broadly flat, and the average ferrous scrap price for the interim consolidated fiscal period was ¥44,250/t, below ¥50,176/t in the same period of the prior year.」
The average ferrous scrap price was below the same-period prior-year level, causing the earnings environment affected by falling metal prices to deteriorate again. The disclosure also identifies this as a factor behind lower earnings in the resource recycling and global trading businesses. - FY2024MitigatedAnnual report
「Under these conditions, the average ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, remained high and stable from the beginning of the period, and the average price for the consolidated fiscal year was ¥50,916, above ¥49,082 in the prior period.」
The full-year average ferrous scrap price exceeded the prior-period level and remained high and stable, mitigating the adverse impact of falling prices on the earnings environment compared with the prior year. However, the risk of market fluctuations itself remains. - FY2024-Q3MitigatedAnnual report
「The ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, remained high and stable from the beginning of the period, and the average ferrous scrap price during the cumulative third quarter was ¥50,881, above ¥48,990 in the same period of the prior year.」
The average ferrous scrap price rose from ¥48,990 in the same period of the prior year to ¥50,881, mitigating the adverse impact of falling prices on the earnings environment compared with the same period of the prior year. However, the risk of price fluctuations itself remains, including weakness in nonferrous and battery material prices. - FY2024-Q2MitigatedAnnual report
「The ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, remained high and stable from the beginning of the period, and the average ferrous scrap price during the cumulative second quarter was ¥50,176 per ton, above ¥47,315 in the same period of the prior year.」
The average ferrous scrap price exceeded the same-period prior-year level, mitigating the adverse impact of falling metal prices on the earnings environment compared with the same period of the prior year. However, the possibility of market fluctuations itself remains. - FY2024-Q1MitigatedAnnual report
「Under these conditions, the ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, trended upward from the beginning of the period, and the average ferrous scrap price during the cumulative first quarter was ¥49,559 per ton, above ¥46,532 in the same period of the prior year.」
The average ferrous scrap price rose from ¥46,532 in the same period of the prior year to ¥49,559, mitigating the adverse impact of falling prices on the earnings environment compared with the same period of the prior year. However, the possibility of fluctuations due to domestic prices exceeding overseas prices, geopolitical risk and other factors remains. - FY2023-Q3WorsenedAnnual report
「Under these conditions, the average ferrous scrap price during the cumulative third quarter, based on the Tokyo Steel Tahara seaborne premium price, was ¥48,990 per ton, compared with ¥53,735 in the same period of the prior year.」
The average ferrous scrap price fell from ¥53,735 in the same period of the prior year to ¥48,990, worsening the earnings environment due to fluctuations in metal prices. - FY2023-Q2WorsenedAnnual report
「As a result, the average ferrous scrap price during the cumulative second quarter was ¥47,315, below ¥52,266 in the same period of the prior year.」
The average ferrous scrap price was below the same-period prior-year level and fluctuated up and down during the period. Earnings risk from market fluctuations continued to affect the resource recycling business through narrower margins on inventory sales. - FY2023-Q1WorsenedAnnual report
「Prices trended downward from the beginning of the period but rose from the latter half of August due to tightening supply and demand caused by sluggish cargo movements and the rapid depreciation of the yen. As a result, the average ferrous scrap price during the cumulative first quarter was ¥46,532, below ¥49,461 in the same period of the prior year.」
Although ferrous scrap prices rebounded during the period, the quarterly average was below the same-period prior-year level, and narrower margins on inventory sales emerged as a factor behind lower earnings in the resource recycling business. - FY2022MitigatedAnnual report
「As a result, the average ferrous scrap price for the consolidated fiscal year, based on the Tokyo Steel Tahara seaborne premium price, was ¥55,520, above ¥36,054 in the prior period. Average copper, aluminum, nickel and cobalt prices also exceeded the prior-period levels.」
The average ferrous scrap price rose year on year, and the main nonferrous metals handled also exceeded the prior-period levels, further mitigating the adverse impact of falling prices on the earnings environment. However, the risk of market fluctuations itself continues. - FY2022-Q3MitigatedAnnual report
「As a result, the average ferrous scrap price during the cumulative third quarter, based on the Tokyo Steel Tahara seaborne premium price, was ¥53,735, above ¥32,231 in the same period of the prior year.」
The average ferrous scrap price exceeded the same-period prior-year level and rose to ¥64,500 at the period-end, the highest level since 2008. Although the risk of market fluctuations remains, the earnings environment was less affected by falling prices than in the prior period. The disclosure also cites uncertainty arising from geopolitical risk. - FY2022-Q2MitigatedAnnual report
「The average ferrous scrap price during the cumulative second quarter, based on the Tokyo Steel Tahara seaborne premium price, was ¥52,266, above ¥28,008 in the same period of the prior year. Average copper, aluminum, nickel and cobalt prices also exceeded the same-period prior-year levels.」
The average ferrous scrap price was well above the same-period prior-year level, while copper, aluminum, nickel and cobalt prices also exceeded the same-period prior-year levels, further mitigating the adverse impact of falling prices on the earnings environment. - FY2022-Q1MitigatedAnnual report
「As a result, the ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, was ¥50,000 at the end of the cumulative first quarter, at the same level as at the end of the prior consolidated fiscal year. The average price during the cumulative first quarter was ¥49,461, above ¥23,225 in the same period of the prior year. Average copper, aluminum and nickel prices also exceeded the same-period prior-year levels.」
The average ferrous scrap price rose from ¥23,225 in the same period of the prior year to ¥49,461, and nonferrous metal prices also exceeded the same-period prior-year levels. Although the risk of market fluctuations remains, the earnings environment improved further. - FY2021MitigatedAnnual report
「The ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, rose from ¥24,500 at the end of the prior consolidated fiscal year to ¥51,500 at the end of the current consolidated fiscal year. The average price for the current consolidated fiscal year was ¥36,054, above ¥22,943 in the prior period.」
The average ferrous scrap price rose from ¥22,943 in the prior period to ¥36,054, improving the earnings environment from the prior period with respect to falling prices. The risk of market fluctuations itself remains. - FY2021-Q3MitigatedAnnual report
「The ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, rose from ¥24,500 at the end of the prior consolidated fiscal year to ¥41,000 at the end of the third quarter of the consolidated fiscal period. The average price during the cumulative third quarter was ¥32,231, above ¥23,607 in the same period of the prior year.」
The ferrous scrap price rose to ¥41,000 at the period-end, and the cumulative average also exceeded the same-period prior-year level. Although the risk of market fluctuations remains, the earnings environment improved from the prior period. - FY2021-Q2MitigatedAnnual report
「As a result, the ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, rose from ¥24,500 at the end of the prior consolidated fiscal year to ¥43,000 at the end of the second quarter of the consolidated fiscal period. The average price during the cumulative second quarter was ¥28,008, above ¥24,302 in the same period of the prior year.」
The ferrous scrap price rose to ¥43,000 toward the period-end, and the cumulative average also exceeded the same-period prior-year level. Although the risk of market fluctuations remains, the earnings environment improved from the prior period, particularly for ferrous scrap. Copper and aluminum prices moved in different directions within nonferrous metals. - FY2021-Q1Lower average prices and a rise toward the period-endAnnual report
「The ferrous scrap price, based on the Tokyo Steel Tahara seaborne premium price, rose from ¥24,500 at the end of the prior consolidated fiscal year to ¥27,000 at the end of the cumulative first quarter. However, the average price during the cumulative first quarter was ¥23,225, below ¥25,364 in the same period of the prior year.」
Ferrous scrap prices rose toward the period-end, while the quarterly average was below the same period of the prior year. The disclosure cites both improving market conditions and the persistence of earnings risk. - FY2020-Q3WorsenedAnnual report
「The average ferrous scrap price during the cumulative third quarter, based on the Tokyo Steel Tahara seaborne premium price, was ¥22,182, compared with ¥34,031 in the same period of the prior year, and reached the period’s low of ¥20,000 at the end of the third quarter of the consolidated fiscal period. Prices remained below the prior-year levels. Copper and aluminum prices, the main nonferrous metals handled, also remained below the prior-year levels.」
The average ferrous scrap price fell from ¥34,031 in the same period of the prior year to ¥22,182, reaching a period low of ¥20,000 at the period-end. Copper and aluminum prices were also below the prior-year levels, and earnings risk from market fluctuations deteriorated. - FY2020-Q2WorsenedAnnual report
「The average ferrous scrap price during the cumulative second quarter, based on the Tokyo Steel Tahara seaborne premium price, was ¥24,302, compared with ¥35,082 in the same period of the prior year, and at one point fell to a three-year low of ¥22,000. Nickel prices remained strong, but copper and aluminum, the main nonferrous metals handled, remained below the prior-year levels.」
The average ferrous scrap price fell from ¥35,082 in the same period of the prior year to ¥24,302, reaching ¥22,000 at one point. Copper and aluminum prices were also below the prior-year levels, causing earnings risk from market fluctuations to deteriorate. - FY2020-Q1WorsenedAnnual report
「The average ferrous scrap price during the cumulative first quarter, based on the Tokyo Steel Okayama seaborne premium price, was ¥24,228, compared with ¥34,413 in the same period of the prior year. Prices continued to decline from the second half of the prior fiscal year and remained weak. Nonferrous metal prices also remained weak.」
The average ferrous scrap price fell from ¥34,413 in the same period of the prior year to ¥24,228, while nonferrous metal prices also weakened, causing earnings risk from market fluctuations to deteriorate. - FY2019-Q3WorsenedAnnual report
「However, amid a sharp fall in domestic Chinese steel prices and higher iron ore prices following the dam accident at Vale’s iron ore mine in Brazil, ferrous scrap prices fluctuated sharply during the period, ranging from a low of ¥27,500 to a high of ¥38,500. Nonferrous prices also remained soft under the influence of an uncertain global economy.」
Ferrous scrap prices fluctuated significantly from ¥27,500 to ¥38,500, while nonferrous prices remained soft, and volatility in market conditions and uncertainty in the external environment continued. - FY2019-Q2WorsenedAnnual report
「However, amid a sharp fall in domestic Chinese steel prices, an increase in export offers for Chinese finished and semi-finished products, and growing concern about the outlook for the global economy, ferrous scrap prices rose temporarily from ¥31,500 at the beginning of the period to ¥38,500, before falling to ¥28,000 at the end of December. Nonferrous prices also trended downward amid uncertainty in the external environment.」
Although ferrous scrap prices exceeded the average for the same period of the prior year, they fell to ¥28,000 toward the period-end, and nonferrous prices also trended downward. The risk from market fluctuations, including uncertainty in the external environment, has again worsened. - FY2019-Q1WorsenedAnnual report
「Overseas, the decline in European and U.S. scrap prices caused by the depreciation of the Turkish currency created a divergence from domestic ferrous scrap prices. Inquiries from major export destinations such as South Korea and Vietnam declined, and trade conditions remain difficult.」
The average domestic ferrous scrap price was ¥34,413, above ¥27,777 in the same period of the prior year, but a divergence from overseas prices arose due to the depreciation of the Turkish currency and other factors. The disclosure cites fewer inquiries from major export destinations and difficult trade conditions. - FY2018Prices remain high while tariffs drive a declineAnnual report
「Ferrous scrap prices rose from ¥25,000 at the beginning of the period, the Tokyo Steel Okayama seaborne premium price, to ¥36,500 at one point, but fell to ¥31,500 by the end of June as the implementation of higher U.S. tariffs on steel and aluminum from March weighed on the broader Asian steel market. However, the average price for the consolidated fiscal year was ¥32,011, above ¥23,471 in the prior consolidated fiscal year, and prices remained firm despite fluctuations.」
Although the full-year average price was well above the prior period, market prices fell toward the period-end following higher U.S. tariffs. The disclosure cites both improvement and increasing uncertainty regarding market volatility risk. - FY2018-Q3WorsenedAnnual report
「However, the market has become more uncertain following the implementation of higher U.S. tariffs on steel and aluminum, and conditions remain difficult to predict.」
Although ferrous scrap and nonferrous metal prices have risen, the disclosure states that market uncertainty increased following higher U.S. tariffs on steel and aluminum. - FY2018-Q2MitigatedAnnual report
「Ferrous scrap prices rose from ¥25,000 at the beginning of the period, the Tokyo Steel Okayama seaborne premium price, to ¥35,500 amid a global surge in steel prices caused by higher iron ore and coking coal prices for blast furnaces. The average price during the cumulative second quarter was ¥30,495, compared with ¥20,484 in the same period of the prior year. Nonferrous metal prices also rose broadly.」
Ferrous scrap and nonferrous metal prices rose above both the same period of the prior year and the beginning of the period, further mitigating the adverse impact of falling prices on the earnings environment. - FY2018-Q1MitigatedAnnual report
「Ferrous scrap prices rose from ¥25,000 at the beginning of the period, the Tokyo Steel Okayama seaborne premium price, to ¥32,500, driven by higher international prices centered on Turkey and higher Chinese steel prices. The average price during the cumulative first quarter was ¥27,777, compared with ¥18,848 in the same period of the prior year. Nonferrous metal prices also rose broadly due to tighter environmental regulations in China.」
Ferrous scrap and nonferrous metal prices rose from both the same period of the prior year and the beginning of the period, improving market conditions. The adverse impact of price fluctuations on quarterly earnings was mitigated, although the risk itself remains. - FY2017MitigatedAnnual report
「Ferrous scrap prices fell from ¥19,500 at the beginning of the period, the Tokyo Steel Okayama seaborne premium price, to ¥18,500, but rose to ¥29,500 from November onward amid soaring prices for blast-furnace raw materials and expectations of increased U.S. infrastructure demand, before ending the period at ¥25,000.」
After falling at the beginning of the period, ferrous scrap prices rose from November onward, with the average recovering from ¥18,126 in the prior period to ¥23,471 in the current period. Market risk remains, but conditions improved from the prior period. - FY2017-Q3MitigatedAnnual report
「During the cumulative third quarter of the fiscal year in the Group’s business areas, ferrous scrap prices initially deteriorated from ¥19,500, the Tokyo Steel Okayama seaborne premium price, but then surged to ¥29,500 by the end of the third quarter of the consolidated fiscal period amid soaring prices for blast-furnace raw materials. Nonferrous metal prices also remained low during the first half, but the market as a whole showed an upward trend amid expectations of economic stimulus measures by the new U.S. administration and China’s infrastructure investment policies.」
Although the impact of deteriorating market conditions remained during the first half, ferrous scrap and nonferrous metal prices rose toward the period-end, and market conditions recovered further from the previous quarter. - FY2017-Q2MitigatedAnnual report
「During the cumulative second quarter of the fiscal year in the Group’s business areas, ferrous scrap prices initially fell from ¥19,500, the Tokyo Steel Okayama seaborne premium price, but then surged to ¥25,500 by the end of the second quarter of the consolidated fiscal period amid soaring prices for blast-furnace raw materials. Nonferrous metal prices also remained low during the first half, but from November onward the market as a whole showed an upward trend amid expectations of economic stimulus measures, including large-scale infrastructure investment by the new U.S. administration, whose inauguration had become certain.」
Although prices declined during the first half of the period, ferrous scrap and nonferrous metal prices rose toward the period-end, and signs of recovery emerged in the second half. The impact on cumulative results nevertheless remains. - FY2017-Q1WorsenedAnnual report
「Earnings deteriorated mainly because weaker ferrous scrap prices adversely affected plant transactions and deteriorating export conditions adversely affected ferrous scrap export transactions. As a result, net sales were ¥6,237 million, down 28.6% year on year; operating loss was ¥88 million, compared with operating profit of ¥253 million in the same period of the prior year; and ordinary loss was ¥51 million, compared with ordinary profit of ¥287 million.」
The impact of falling and deteriorating metal prices continued in the quarter, with operating profit and ordinary profit in the same period of the prior year turning into operating loss and ordinary loss. The earnings impact of the known market risk has become more severe than in the first quarter of the prior fiscal year. - FY2016First statedAnnual report
「Sales declined because prices for the Group’s main products fell significantly year on year: ferrous scrap by 34%, copper by 20%, aluminum by 22% and nickel by 34%.」
The period’s disclosure cites actual declines in metal prices, lower liquidity, narrower margins and deteriorating earnings. The full-year average ferrous scrap price also fell from ¥27,325 in the sixth period to ¥18,126 in the seventh period.