Rising Steel Prices and Insufficient Procurement Volumes
First written in FY2016. 11 of 20 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
TAKADAKIKO(Steel Construction) 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 2021: 13 of 28 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In the steel structures business, many large projects are planned, including redevelopment projects in the Tokyo metropolitan area and semiconductor-related capital investment, but some projects have been suspended or postponed because construction costs have remained elevated, and uncertainty about the outlook has persisted.」
Persistently high construction costs led to the suspension or postponement of large projects, while difficult cost and procurement conditions, including for steel, continued. - FY2026-H1RestatedAnnual report
「In the steel structures business, potential demand exists for large-scale redevelopment projects in the Tokyo metropolitan area and IR-related projects in the Kansai region, but some large projects have been cancelled or postponed because of soaring construction costs and labor shortages, and uncertainty about the outlook has persisted.」
Soaring construction costs and labour shortages have led to the cancellation or postponement of some large projects, and the order environment for the steel structures business, including higher costs, remains challenging. - FY2025WorsenedAnnual report
「Soaring construction costs, including steel and labour costs, made selective order acceptance by general contractors commonplace, widening the gap between planned and actual construction projects, while demand for steel structures remained at a low level.」
It was stated that soaring construction costs, including steel and labour costs, led to selective order acceptance by general contractors, a divergence between planned and actual construction projects, and persistently low demand for steel structures. The adverse cost and demand environment continued. - FY2025-H1WorsenedAnnual report
「Although the steel structures business has potential demand from large-scale redevelopment projects in the Tokyo metropolitan area and integrated resort-related projects in the Kansai region, delays to construction schedules and design revisions caused by soaring construction costs and labour shortages became evident, and instances of lower order prices to secure work were observed.」
Higher construction costs became evident alongside construction delays, design revisions and lower order prices, worsening the cost and profitability environment for the steel structures business. - FY2024WorsenedAnnual report
「In the industry, orders for new steel bridges fell substantially in the bridge business, owing to the winding down of orders for large projects involving urban-area ring roads, as well as delays in ordering new projects caused by soaring material and labour costs and schedule adjustments.」
Soaring material and labour costs and delays in ordering caused by schedule adjustments led to a substantial decline in orders for new steel bridges. The impact of higher raw-material and other costs materialised in the order environment. - FY2024-Q3WorsenedAnnual report
「In the steel structures business, large-scale redevelopment projects in the Tokyo metropolitan area remained firm. However, higher construction prices, driven by rising labour and logistics costs as well as persistently high prices for other materials and energy, led to a cautious stance toward new construction investment, and demand for steel structures entered a declining phase.」
Higher labour and logistics costs, together with persistently high prices for other materials and energy, pushed up construction prices, encouraged a more cautious stance toward new construction investment, and shifted demand for steel structures from the previous transitional period into a declining phase. - FY2024-Q2RestatedAnnual report
「In the steel structures business, large-scale redevelopment projects in the Tokyo metropolitan area generally progressed smoothly. However, persistently high prices for other materials and energy, together with labour shortages, drove up construction prices, prompting a cautious stance toward new construction investment and prolonging the transitional period in demand for steel structures.」
Persistently high prices for other materials and energy continued to affect construction prices and the transitional period in demand for steel structures. Recognition of the risk from higher raw-material and energy costs continued. - FY2024-Q1RestatedAnnual report
「In terms of earnings, despite increases in selling, general and administrative expenses accompanying higher various expenses and the impact of higher costs in the steel structures business, the bridge business's projects on hand progressed smoothly. As a result, performance improved significantly year on year and the company achieved a favorable result.」
In the steel structures business, higher costs continued to weigh on profitability. The impact of higher raw-material and other costs persisted, but no further expansion was explicitly noted during the quarter. - FY2023WorsenedAnnual report
「Progress in both the bridge and steel structures businesses stalled, and unprofitable construction projects arose. As a result, completed construction revenue fell short of the earnings forecast, while operating income and ordinary income also came in below forecast.」
Higher prices for steel, other materials and energy were cited as factors behind the transitional period in demand for steel structures and deteriorating profitability, with the impact of raw-material and energy costs continuing. - FY2023-Q3RestatedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, were generally ordered smoothly. However, amid issues involving schedule slippage and soaring steel and ancillary-material prices, securing appropriate order prices reflecting the higher costs remained an important issue for fabricators.」
Although orders for large-scale redevelopment projects continued, steel and ancillary-material prices remained elevated, and securing appropriate order prices reflecting the higher costs continued to be an issue. - FY2023-Q2RestatedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, were generally ordered smoothly. However, combined with issues involving schedule slippage and the impact of soaring steel and ancillary-material prices, the order environment for fabricators continued to lack clarity.」
Although orders for large-scale redevelopment projects continued, soaring steel and ancillary-material prices affected the order environment, and uncertainty persisted. - FY2023-Q1WorsenedAnnual report
「In the steel structures business, large-scale redevelopment projects, mainly in the Tokyo metropolitan area, generally progressed smoothly. However, the prolonged impact of COVID-19 and soaring steel and ancillary-material prices remained significant, and the order environment for fabricators continued to lack clarity.」
The significant impact of soaring steel and ancillary-material prices continued, and uncertainty in the order environment for the steel structures business remained pronounced. - FY2022WorsenedAnnual report
「However, in addition to soaring steel prices and longer delivery lead times, numerous challenges, including persistent schedule and process slippage, shortages of skilled workers and higher fuel costs, stood in the way, making a cautious approach to securing orders necessary.」
In addition to soaring steel and ancillary-material prices and longer delivery lead times, higher fuel costs were also explicitly identified, increasing the impact of raw-material and procurement cost risks. - FY2022-Q3WorsenedAnnual report
「However, soaring steel and ancillary-material prices, together with longer delivery lead times, had a significant impact on profitability, requiring a cautious approach to securing orders.」
In addition to soaring steel and ancillary-material prices, delivery lead times also lengthened, and their impact on profitability was considered significant. Raw-material and procurement risks became even more pronounced than in the previous quarter. - FY2022-Q2WorsenedAnnual report
「However, despite the recovery in demand, profitability was expected to be severely affected by higher steel and ancillary-material prices, forcing the company to make extremely difficult decisions regarding new orders.」
While demand for steel structures recovered, higher steel and ancillary-material prices clearly made profitability more challenging, with the risk of rising raw-material prices having a specific impact on order decisions in the steel structures business. - FY2022-Q1MaterialisedAnnual report
「Under these circumstances, price increases were implemented for steel and ancillary materials, making the order environment for fabricators extremely challenging.」
Price increases were implemented for steel and ancillary materials, making the order environment for the steel structures business extremely challenging. The risk of rising raw-material prices has materialised in the external environment. - FY2021RestatedAnnual report
「In addition, we cannot rule out the possibility that tight supply and demand for steel could make it difficult to secure the required volumes. Delays in steel deliveries or an inability to secure the required volumes could have a significant impact on our performance.」
The company has continued to disclose raw-material risks involving higher steel prices, delivery delays and difficulty securing the required volumes. - FY2020-Q2MitigatedAnnual report
「Although the previously significant difficulty procuring high-strength bolts has gradually begun to improve, demand for steel structures is expected to remain firm during the fiscal year.」
It was indicated that, although difficulty procuring high-strength bolts continues, conditions are gradually improving. - FY2020-Q1WorsenedAnnual report
「Although issues such as difficulty procuring high-strength bolts remain, demand for steel structures is expected to remain firm during the fiscal year.」
In the market environment for the steel structures business, difficulty procuring high-strength bolts was explicitly identified as an issue. This is a specific procurement constraint related to the previously identified risk of insufficient procurement volumes for steel and other materials. - FY2016First statedAnnual report
「Steel prices have been highly volatile in recent years. If steel prices continue to rise and the increase cannot be passed through to order prices, this could have a significant impact on our performance. In addition, we cannot rule out the possibility that tight supply and demand for steel could make it difficult to secure the required volumes.」
For steel, a key raw material, both the inability to pass through price increases and difficulty securing sufficient volumes are identified as risks.