Copper price volatility risk and hedging
First written in FY2016. 22 of 42 entries say "Worsened", first in FY2017-Q3. Latest entry: 2026-11-13.
Nippon Shindo moved to the "Worse" side of this theme in 2016, 9 years before the typical company in this theme (2025).
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The benchmark price of copper, our principal raw material and an internationally traded commodity, rose to ¥2.19 million per tonne on 13 January of the same year because of surging LME prices and the weaker yen.」
The copper benchmark price rose from ¥1.75 million per tonne in the previous fiscal year to ¥2.19 million, and the derivative loss increased from ¥360 million to ¥1,703 million. Meanwhile, the derivative valuation loss decreased from ¥94 million to ¥23 million. - 2026-06-01WorsenedGeneral Meetings of Shareholders
「銅相場の変動リスクをヘッジするためのデリバティブ取引でデリバティブ損失が17億３百万円発生したため、経常利益は10億28百万円（同27.2％減少）、当期純利益は７億42百万円（同23.1％減少）となりました。」
デリバティブ損失が17億３百万円発生し、銅相場変動とヘッジ関連損失の影響が拡大している。 - FY2026-H1Prices remain high, with higher valuation loss and lower realized lossAnnual report
「The price of copper, our principal raw material and an internationally traded commodity, remained near record highs. A derivative valuation loss of ¥300 million arose from transactions hedging copper price risk, resulting in ordinary income of ¥436 million, down 44.9%, and interim net income of ¥299 million, down 44.9%.」
Copper prices remained near record highs, and the derivative valuation loss increased from ¥11 million in the same period of the previous year to ¥300 million. Meanwhile, the derivative loss decreased from ¥285 million to ¥8 million. - FY2025New high for the copper benchmark price, higher realized loss and lower valuation lossAnnual report
「The benchmark price of our principal raw material and internationally traded commodity, copper, reached a record high of ¥1.75 million per tonne on 21 May 2024.」
The copper benchmark price reached a record high of ¥1.75 million per tonne, and the derivative loss increased from ¥248 million in the previous year to ¥360 million. Meanwhile, the derivative valuation loss decreased from ¥201 million to ¥94 million, resulting in divergent impacts across hedging-related items. - FY2025-H1WorsenedAnnual report
「As copper prices remained near record highs, net sales rose 8.6% to ¥12,834 million and operating income rose 79.9% to ¥1,064 million. However, because derivative transactions hedging copper price fluctuation risk generated a ¥285 million derivative loss, ordinary income rose 96.3% to ¥792 million and interim net income rose 96.0% to ¥543 million.」
Copper prices remained near record highs, and the derivative loss increased from ¥51 million in the same period of the previous year to ¥285 million. Meanwhile, the derivative valuation loss decreased from ¥174 million to ¥11 million, so the impact of hedging-related results was mixed, but the impact of realized losses expanded. - FY2024WorsenedAnnual report
「The benchmark price of copper, our principal raw material and an internationally traded commodity, reached a new high in March 2024.」
The copper benchmark price reached a new high in March 2024, resulting in a ¥248 million derivative loss and a ¥201 million derivative valuation loss. The impact of market fluctuations and hedging losses has become apparent. - FY2024-Q3Hedging losses continueAnnual report
「Derivative transactions hedging copper price risk generated a ¥145 million derivative loss, resulting in ordinary income of ¥806 million, down 43.4%, and net income for the quarter of ¥555 million, down 43.1%.」
Copper hedging transactions generated a ¥145 million derivative loss. Following the recognition of a loss in the previous quarter, hedging-related losses have continued. - FY2024-Q2WorsenedAnnual report
「Derivative transactions hedging copper price risk generated a ¥51 million derivative loss and a ¥174 million derivative valuation loss, resulting in ordinary income of ¥403 million, down 66.9%, and net income for the quarter of ¥277 million, down 66.8%.」
Results changed from a ¥312 million derivative gain and an ¥86 million valuation loss in the same period of the previous year to a ¥51 million derivative loss and a ¥174 million valuation loss in the current period, expanding the impact of hedging-related losses. - FY2024-Q1Mixed hedging gains, valuation gains and valuation lossesAnnual report
「Derivative transactions hedging copper price risk generated a ¥90 million derivative gain, an ¥18 million derivative valuation gain and a ¥126 million derivative valuation loss, resulting in ordinary income of ¥321 million, down 62.3%.」
The copper hedging transactions generated a ¥90 million gain, an ¥18 million valuation gain and a ¥126 million valuation loss at the same time, resulting in mixed hedging-related results. - FY2023High prices continue, with mixed hedging gains and lossesAnnual report
「Operating income fell 32.7% to ¥1,591 million. However, derivative transactions hedging copper price risk generated a ¥22 million derivative valuation gain, a ¥34 million derivative loss and a ¥90 million derivative valuation loss, resulting in ordinary income of ¥1,505 million, up 0.1%.」
As copper prices remained higher than in the same period of the previous year, a derivative valuation gain, a derivative loss and a derivative valuation loss were all recognized. Compared with the previous fiscal year's loss-centered situation, full-year hedging-related results were mixed. - FY2023-Q3Prices remain high and hedging has shifted to gainsAnnual report
「As a result, during the nine months ended with the third quarter, sales volume was 18,411 tonnes, down 4.1% year on year, while revenue was ¥21,071 million, up 9.3%, because copper prices were higher than in the previous year. In terms of earnings, operating income was ¥1,255 million, down 25.7%. However, derivative gains of ¥156 million arose on transactions used to hedge copper-price risk, resulting in ordinary income of ¥1,425 million, up 14.1%, and quarterly net income of ¥976 million, up 14.8%.」
Copper prices were higher than in the same period of the previous year, and hedging transactions generated a ¥156 million derivative gain. Results changed from a ¥269 million derivative loss and a ¥182 million valuation loss in the same period of the previous year to a ¥156 million gain and a ¥22 million valuation gain in the current period. - FY2023-Q2LME prices fall while the domestic benchmark price remains high; hedging gain and valuation lossAnnual report
「Operating income fell 20.9% to ¥982 million, but derivative transactions hedging copper price risk generated a ¥312 million derivative gain and an ¥86 million derivative valuation loss. As a result, ordinary income rose 1.8% to ¥1,219 million and net income for the quarter rose 2.4% to ¥835 million.」
Although the LME price of copper fell sharply amid stagnant economic activity in China and other factors, the domestic benchmark price remained high because of the weaker yen. Hedging transactions generated a ¥312 million derivative gain and an ¥86 million valuation loss, changing the way results emerged from the previous quarter's valuation-gain-centered situation. - FY2023-Q1Falling copper prices and a shift to hedging gainsAnnual report
「Although the prices of our various purchased goods rose, the LME (London Metal Exchange) price of copper, our principal raw material and an internationally traded commodity, fell sharply amid stagnant economic activity in China and other factors. Operating income fell 22.5% to ¥572 million, but derivative transactions hedging copper price risk generated a ¥47 million derivative gain and a ¥223 million derivative valuation gain. As a result, ordinary income rose 38.8% to ¥851 million and net income for the quarter rose 39.7% to ¥583 million.」
Copper prices fell sharply amid stagnant economic activity in China and other factors, while hedging transactions generated a ¥47 million derivative gain and a ¥223 million valuation gain. The way market and hedging results emerged changed from the previous fiscal year's high-price, loss-centered situation. - FY2022WorsenedAnnual report
「The prices of our various purchased goods rose, and the benchmark price of copper, our principal raw material and an internationally traded commodity, reached a new record high of ¥1.34 million per tonne in October 2021.」
The copper benchmark price reached the record high of ¥1.34 million, resulting in a full-year derivative loss of ¥562 million and a derivative valuation loss of ¥313 million. The impact of market fluctuations continues to materialize. - FY2022-Q3WorsenedAnnual report
「Against a backdrop of higher resource prices and supply constraints, domestic corporate prices rose and consumer prices also turned upward. The purchase prices of our various supplies increased, and the benchmark price of copper, our principal raw material and an internationally traded commodity, reached an all-time high of ¥1.34 million per tonne on 19 October last year, partly because of the weaker yen.」
The copper benchmark price reached an all-time high of ¥1.34 million per tonne, and the purchase prices of various supplies also rose. Hedging-related results included a ¥269 million derivative loss and a ¥182 million derivative valuation loss, indicating the continuing impact of market fluctuation risk. - FY2022-Q2Prices remain high, with mixed hedging gains and lossesAnnual report
「The benchmark price of our principal raw material and internationally traded commodity, copper, reached an all-time high in May and remained near record levels thereafter.」
While copper prices remained near record highs, a ¥104 million derivative valuation gain, a ¥152 million derivative loss and a ¥5 million derivative valuation loss were recognized, resulting in mixed gains and losses in hedging-related results. The quantified impact of market fluctuation risk continues to materialize. - FY2022-Q1Copper prices at an all-time high and continued hedging lossesAnnual report
「The benchmark price of our principal raw material and internationally traded commodity, copper, reached ¥1.19 million per tonne in May, setting a new all-time high.」
The copper benchmark price reached ¥1.19 million per tonne, a new all-time high. Hedging transactions resulted in a ¥142 million derivative loss, while a ¥47 million derivative valuation gain was also recognized, indicating the continuing impact of market fluctuation risk. - FY2021WorsenedAnnual report
「Derivative losses of ¥274 million in the fourth quarter and ¥858 million for the full year arose from transactions hedging copper price risk.」
The full-year derivative loss was ¥858 million, a significant shift from the ¥141 million derivative gain and ¥235 million valuation gain in the previous fiscal year to recognized losses. The impact of hedging losses associated with rising copper prices became apparent over the full year. - FY2021-Q3WorsenedAnnual report
「Operating income increased 14.5% to ¥968 million, driven by higher copper prices and other factors. However, because losses arose from derivative transactions hedging copper price risk, ordinary income fell 68.7% to ¥270 million and net income for the quarter fell 68.2% to ¥186 million.」
Against a backdrop of rising copper prices, a ¥584 million derivative loss and a ¥144 million derivative valuation loss were recognized. The loss impact expanded from a ¥143 million derivative gain and a ¥134 million valuation loss in the same period of the previous year. - FY2021-Q2WorsenedAnnual report
「The domestic benchmark price of copper, one of our principal raw materials and an internationally traded commodity, continued to rise, supported by the recovery of the Chinese economy and the partial suspension of mining operations in Chile due to the spread of infection, among other factors.」
The domestic copper benchmark price continued to rise, with the results changing from a ¥157 million derivative gain and a ¥31 million valuation gain in the same period of the previous year to a ¥399 million derivative loss and a ¥58 million valuation loss in the current period. The impact of hedging losses associated with rising market prices has expanded. - FY2021-Q1WorsenedAnnual report
「The domestic benchmark price of copper, one of our principal raw materials and an internationally traded commodity, turned upward as the Chinese economy began to recover and some mines in Chile suspended operations because of the spread of infection.」
The domestic copper benchmark price turned upward, and losses arose from derivative transactions hedging market risk. The financial statements recorded a ¥102 million derivative loss and a ¥187 million derivative valuation loss. - FY2020WorsenedAnnual report
「We use copper and zinc, both internationally traded commodities, as our principal raw materials. Sharp fluctuations in copper and zinc prices could result in unrealized gains or losses on inventories, including raw materials held and work in process. If speculative funds were to corner the market for copper or zinc, production could be disrupted by raw-material shortages. In addition, if raw-material prices continued to surge, customers could switch from brass to alternative materials, potentially reducing demand for brass rods and wire. Copper and zinc prices could also fluctuate sharply because of the impact of COVID-19 and other factors.」
The scope of the risks described has expanded from conventional copper price volatility to sharp fluctuations in copper and zinc prices, raw-material shortages, switching to alternative materials, and price volatility caused by infectious diseases. - FY2020-Q3WorsenedAnnual report
「The benchmark price of our principal raw material, copper, rose somewhat from October 2019 onward.」
The copper benchmark price turned upward somewhat from its downward trend from October 2019 onward, resulting in a ¥143 million derivative gain and, at the same time, a ¥134 million derivative valuation loss. A valuation loss associated with rising market prices actually materialized. - FY2020-Q2Falling prices and expanding hedging gainsAnnual report
「The benchmark price of our principal raw material, copper, was on a generally consistent downward trend.」
While the copper benchmark price continued to decline, the derivative gain from hedging raw-material price risk was ¥157 million and the derivative valuation gain was ¥31 million. - FY2020-Q1MaterialisedAnnual report
「The benchmark price of our principal raw material, copper, was on a downward trend and fell below ¥700,000 per tonne.」
The decline in the copper benchmark price materialized, with the derivative result changing from a ¥58 million loss in the same period of the previous year to a ¥50 million gain in the current period. The derivative valuation gain also changed from ¥14 million to ¥71 million. - FY2019Falling prices and a reversal in hedging gains and lossesAnnual report
「The benchmark price of our principal raw material, copper, reached ¥800,000 per tonne in the first quarter accounting period, but fell from the cumulative second-quarter period onward and remained in the ¥700,000 range.」
The copper benchmark price fell from ¥800,000 in the first quarter to the ¥700,000 range thereafter. For the full year, a ¥33 million derivative gain and a ¥60 million derivative valuation loss were recognized. The risk of market fluctuations continues to materialize. - FY2019-Q3RestatedAnnual report
「The benchmark price of our principal raw material, copper, reached the ¥800,000 range per tonne in the first quarter accounting period, but fell somewhat from the second quarter accounting period onward and remained in the ¥700,000 range.」
The copper benchmark price fell from the ¥800,000 range in the first quarter to the ¥700,000 range from the second quarter onward, resulting in a ¥38 million derivative gain and a ¥48 million derivative valuation gain. This reconfirms the continuing shift to hedging gains amid falling market prices since the previous quarter. - FY2019-Q2Falling prices and a shift to hedging gainsAnnual report
「The benchmark price of our principal raw material, copper, reached the ¥800,000 range per tonne in the first quarter accounting period, but fell somewhat upon entering the second quarter accounting period and remained in the ¥700,000 range.」
The copper benchmark price fell from the ¥800,000 range in the first quarter to the ¥700,000 range in the second quarter, resulting in a ¥38 million derivative gain from hedging raw-material price risk. The impact changed from the ¥98 million derivative loss in the same period of the previous year. - FY2019-Q1WorsenedAnnual report
「The benchmark price of our principal raw material, copper, remained around ¥800,000 per tonne.」
The copper benchmark price rose from the high ¥600,000s per tonne in the same quarter of the previous year to around ¥800,000, and a ¥58 million derivative loss from hedging raw-material price risk was also recognized. High copper prices and hedging losses continued to materialize. - FY2018WorsenedAnnual report
「The market price of copper, one of our principal raw materials, rose. Sales volume was 24,894 tonnes, down 10.9% year on year, but because copper prices were higher than in the same period of the previous year, net sales increased 20.6% to ¥19,064 million. Operating income rose 44.3% to ¥1,333 million, while ordinary income increased 57.2% to ¥1,200 million, partly because a ¥228 million derivative loss was recognized to hedge raw-material price risk.」
Copper prices rose, resulting in a ¥228 million derivative loss from hedging raw-material prices. The loss increased from the ¥217 million derivative loss in the previous year. - FY2018-Q3WorsenedAnnual report
「The domestic price of copper, one of our principal raw materials and an internationally traded commodity, remained at elevated levels after rising last autumn.」
Copper prices remained high, resulting in a ¥212 million derivative loss and a ¥117 million derivative valuation loss from hedging raw-material price risk. The loss increased from the ¥98 million derivative loss in the previous quarter, indicating a worsening impact from market fluctuations. - FY2018-Q2WorsenedAnnual report
「Sales volume was 12,709 tonnes, down 5.4% year on year, but revenue was ¥9,064 million, up 26.1%, because copper prices were higher than in the same quarter of the previous year. In terms of earnings, operating income was ¥613 million, up 99.7%, while ordinary income was ¥468 million, up 34.0%, mainly because derivative losses of ¥98 million were recorded to hedge the risk of raw-material prices. Quarterly net income was ¥353 million, up 43.0%.」
Copper prices were higher than in the same quarter of the previous year, resulting in a ¥98 million derivative loss and a ¥56 million derivative valuation loss from hedging raw-material price risk. The figures shifted from a ¥33 million derivative gain and a ¥4 million valuation loss in the same quarter of the previous year to recognized losses, with the impact of hedging transaction losses expanding. - FY2018-Q1MaterialisedAnnual report
「In terms of earnings, operating income was ¥223 million, up 60.1% year on year, while ordinary income was ¥204 million, up 16.0%, mainly because a derivative valuation loss of ¥52 million was recorded to hedge the risk of raw-material prices. Quarterly net income was ¥143 million, up 15.5%.」
While explaining that the copper benchmark price had been stable in the high ¥600,000s per tonne, the company actually recorded a derivative valuation loss of ¥52 million associated with hedging raw-material price risk. - FY2017WorsenedAnnual report
「Ordinary income was ¥763 million, up 83.3% year on year, primarily because derivative losses of ¥217 million were recorded on transactions conducted to hedge against fluctuations in raw-material prices, compared with derivative gains of ¥188 million in the same period of the previous year.」
Hedging transactions against copper price fluctuations changed from a gain in the previous year to a loss of ¥217 million, quantifying the impact of price volatility. - FY2017-Q3WorsenedAnnual report
「The market price of copper, our main raw material, had been on a sustained downward trend since June two years earlier, but reversed course and surged immediately after the US presidential election in November last year.」
Copper prices reversed from a downward trend and surged, resulting in a derivative loss of ¥111 million and a derivative valuation loss of ¥87 million in connection with hedging raw-material price risk. The situation changed from recording hedging gains through the previous quarter, and the impact of price volatility worsened. - FY2017-Q2MaterialisedAnnual report
「As the foreign exchange market moved toward a stronger yen, the market price of copper, our main raw material, declined.」
Copper prices also declined during the quarter. Derivative gains of ¥33 million from hedging raw-material price risk were recorded as non-operating income. Copper price volatility risk materialized with a quantified impact. - FY2017-Q1MaterialisedAnnual report
「The market price of copper, our main raw material, was on a downward trend.」
The decline in copper prices continued during the quarter, and derivative gains of ¥23 million from hedging raw-material price risk were recorded as non-operating income. Copper price volatility risk materialized again during the period. - FY2016MaterialisedAnnual report
「The market price of copper, our main raw material, continued to decline from June 2015. However, as copper is a commodity, significant market-price volatility remains a concern, and our policy is to minimize this market risk by making full use of hedging instruments.」
The decline in copper prices is explicitly described, and a hedging policy involving commodity futures and other instruments is also presented.