Titanium Raw Material Supply, Demand and Price Fluctuation Risk
First written in FY2016. 7 of 21 entries say "Worsened", first in FY2018. Latest entry: FY2026.
OSAKA Titanium technologies moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 27 of 53 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「We are working to secure stable supplies of these materials by diversifying suppliers and strengthening relationships with them, while also working to pass fluctuations in the prices of titanium raw materials and other materials through to our product prices.」
Specific measures were described to address supply-demand and price fluctuation risks for titanium raw materials and other materials, including supplier diversification, stronger supplier relationships and passing costs through to product prices. - FY2026-H1Lower ore prices alongside higher inflation-driven costsAnnual report
「Although lower prices for titanium ore, the main raw material, had a positive effect, operating profit fell 40.6% year on year to ¥3,345 million, owing mainly to production cuts accompanying lower domestic sales volumes and the impact of higher costs due to inflation.」
Lower prices for titanium ore, the main raw material, were specifically cited as a factor supporting profit, while higher costs due to inflation were cited as a factor weighing on profit. The impact of raw material price risk was not unidirectional, with lower prices and higher costs occurring simultaneously. - FY2025-H1RestatedAnnual report
「At the same time, concerns have emerged, including worsening labor shortages, continued increases in resource and energy prices, inflation caused by rising prices, and sharp fluctuations in foreign exchange rates and stock prices.」
Continued increases in resource and energy prices remained identified as a concern in the business environment. Recognition of the risk associated with raw material price fluctuations has continued. - FY2024MaterialisedAnnual report
「Despite adverse factors such as higher titanium ore and electricity prices, operating profit rose 73.4% year on year to ¥8,288 million, supported by higher sales volumes in the titanium business, price adjustments and the effect of the weaker yen.」
Higher titanium ore and electricity prices were specifically cited as adverse factors affecting the year's earnings. In contrast, operating profit improved due to higher sales volumes, price adjustments and the effect of the weaker yen. - FY2024-Q3MaterialisedAnnual report
「Regarding operating results, despite the impact of higher fuel and raw material prices, operating profit was ¥6,611 million, up 175.8% year on year, due to higher sales and production volumes, sales price adjustments, operating improvements, softer ocean freight rates and the positive effect of the yen's depreciation.」
It was disclosed that the impact of higher raw material and fuel prices was present in earnings for the cumulative third quarter. Meanwhile, operating income improved due to increased sales volumes, price adjustments and operating improvements. - FY2024-Q2RestatedAnnual report
「However, the outlook remains uncertain amid concerns in Japan over sharply higher resource and raw material prices, including the impact of yen depreciation, inflation caused by rising prices, labor shortages, the prolonged effects of Russia's invasion of Ukraine and the slowdown in the Chinese economy overseas, as well as the risk of an economic downturn resulting from monetary tightening.」
Sharp increases in resource and raw material prices continued to be disclosed as a concern. Awareness of raw material price risk has continued. - FY2023-Q2WorsenedAnnual report
「There were adverse factors, including higher titanium ore and electricity prices.」
Higher titanium ore prices were explicitly identified as an adverse factor affecting earnings for the quarter. Although earnings improved due to increased sales volumes, price adjustments and other factors, pressure from raw material price risk continued. - FY2023-Q1RestatedAnnual report
「Raw material and fuel costs, particularly titanium sources and coal, as well as ocean freight costs, also remain elevated.」
It was disclosed that raw material and fuel costs, particularly titanium sources and coal, remain elevated. The existing risk assessment concerning the raw material and fuel cost environment was reiterated, with persistently high ocean freight costs also cited. - FY2022WorsenedAnnual report
「Titanium ore and fuel prices, which had already risen sharply, have been pushed up further by Russia's invasion of Ukraine, leaving the outlook still uncertain.」
It was disclosed that the sharp increases in titanium ore and fuel prices had accelerated further due to the invasion of Ukraine, explicitly indicating a deterioration in the raw material and fuel cost environment. - FY2022-Q3WorsenedAnnual report
「Regarding operating results, operating loss was ¥1,328 million, compared with a loss of ¥2,103 million in the same period of the previous year. Positive factors included continued company-wide earnings improvement measures, higher revenue in the titanium business and the yen's depreciation, while negative factors included continued reductions in sponge titanium production to reduce product inventories, persistently high raw material prices and higher container costs for exports.」
In addition to persistently high raw material prices, rising container costs for exports continued to be disclosed as a factor worsening operating losses. The deteriorating cost environment is affecting earnings even as sales recover. - FY2022-Q2WorsenedAnnual report
「The Company's titanium business also faces concerns including persistently high raw material prices and rising container costs for exports, increasing uncertainty over the outlook.」
While raw material prices remain elevated, rising container costs for exports were also newly cited, expanding concerns regarding the titanium business's cost environment. - FY2021RestatedAnnual report
「If an imbalance between supply and demand for titanium feedstock restricts procurement volumes or causes purchase prices to fluctuate substantially, the Company's performance may be affected.」
The risk of fluctuations in titanium feedstock procurement volumes and purchase prices continued to be disclosed. - FY2020MaterialisedAnnual report
「Despite efforts to increase sales volumes and improve costs in the titanium business, operating income was ¥1,142 million, down 50.5% year on year, due largely to higher prices for titanium raw materials.」
Higher titanium raw material prices were a factor behind the 50.5% year-on-year decline in operating income, and the impact of raw material price risk actually appeared in the full-year results. - FY2020-Q3WorsenedAnnual report
「Although sales in the titanium business increased, operating income declined 48.7% year on year to ¥831 million due to higher raw material prices and other factors, ordinary income declined 58.8% to ¥795 million, and quarterly net income was ¥543 million. In the same period of the previous year, a loss of ¥8,052 million was recorded because extraordinary losses included the loss on withdrawal from the polysilicon business and the impact of the Northern Osaka Earthquake and other factors.」
Although sales in the titanium business increased, operating income declined 48.7% year on year due to higher raw material prices and other factors. The impact of raw material price fluctuations on performance was quantified more substantially in the cumulative third quarter. - FY2020-Q2MaterialisedAnnual report
「Although sales volumes, mainly in the titanium business, increased, operating income declined 15.2% year on year to ¥693 million due to higher raw material and fuel prices, the impact of the stronger yen and other factors.」
Although sales volumes in the titanium business increased, operating income declined 15.2% year on year due to higher raw material and fuel prices and the impact of the stronger yen, with the impact of raw material and fuel price risk materializing in the results. - FY2019MaterialisedAnnual report
「Despite efforts to increase sales volumes and improve costs in the titanium business, operating income was ¥2,308 million, down 30.5% year on year, due to higher prices for titanium feedstock and other factors and increased repair expenses.」
Higher prices for titanium feedstock and other materials were explicitly identified as factors behind the decline in operating income, and raw material price fluctuation risk actually affected performance for the year. - FY2019-Q3MaterialisedAnnual report
「Although titanium sales increased, operating income declined 14.6% year on year to ¥1,621 million due to higher raw material prices and other factors.」
Higher raw material prices were explicitly identified as a factor behind the decline in operating income, and the impact of raw material price fluctuation risk materialized in performance. - FY2019-Q2WorsenedAnnual report
「During the cumulative second quarter, the Japanese economy was on a gradual recovery trend, with corporate earnings improving and employment continuing to expand. However, the outlook remained uncertain amid natural disasters such as torrential rain, typhoons and earthquakes, heightened trade friction risks overseas, and rising raw material prices.」
Rising raw material prices were disclosed, with the risk of raw material price fluctuations continuing to materialize in the external environment. - FY2018WorsenedAnnual report
「Crude oil and feedstock market prices remain elevated. Although these markets depend on the supply and demand outlook for each product, we believe a commensurate impact on our product costs will be unavoidable.」
The new medium-term management plan explicitly stated that the impact of elevated crude oil and feedstock market prices on product costs is unavoidable. - FY2017RestatedAnnual report
「If an imbalance between supply and demand for titanium feedstock restricts procurement volumes or causes purchase prices to fluctuate substantially, the Company's performance may be affected.」
The risk of fluctuations in titanium feedstock procurement volumes and purchase prices was disclosed again. - FY2016First statedAnnual report
「If an imbalance between supply and demand for titanium feedstock restricts procurement volumes or causes purchase prices to fluctuate substantially」
It was disclosed that fluctuations in feedstock procurement volumes and purchase prices may affect performance.