Risk of soaring metal material prices and procurement disruptions
First written in FY2021. 3 of 9 entries say "Restated". Latest entry: FY2025.
Tve moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 29 of 58 companies on the "Worse" side.
20 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Global conflicts and foreign exchange volatility stemming from interest-rate differentials with major overseas countries are having unprecedentedly significant effects in many areas, including higher raw material and fuel prices. Changes in the social structure arising from environmental issues may also have a substantial impact on business performance.」
The factors affecting material price and procurement risks expanded to include conflicts, foreign exchange volatility resulting from interest-rate differentials, fuel prices and structural changes in raw material demand associated with environmental issues. - FY2024WorsenedAnnual report
「Global conflicts and foreign exchange volatility stemming from interest-rate differentials with major overseas countries are having unprecedentedly significant effects in many areas, including higher raw material and fuel prices. Changes in the social structure arising from environmental issues may also have a substantial impact on business performance.」
The factors affecting risks related to metal material prices and procurement expanded and became more specific, including conflicts, foreign exchange volatility, fuel prices, structural changes in scrap demand and electricity consumption. - FY2024-Q2RestatedAnnual report
「During the first six months of the fiscal year, there were no newly emerging business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No new developments or material changes were identified regarding the risk of surging metal material prices and procurement disruptions. - FY2024-Q1RestatedAnnual report
「During the first quarter of the fiscal year, there were no newly emerging business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No new developments or material changes were identified regarding the risk of surging metal material prices and procurement disruptions. - FY2023-Q3MaterialisedAnnual report
「The steelmaking business reported revenue of ¥863 million, up 10.5% year on year, as sales to some customers increased from the same period of the previous year. The segment posted a loss of ¥131 million, compared with a loss of ¥237 million in the same period of the previous year. Despite higher electricity costs, soaring material procurement prices and other factors, the loss decreased owing mainly to the impact of increased inventories accompanying growth in the order backlog.」
Higher purchase prices for materials continued to materialize as a factor behind increased costs in the steelmaking business. However, the loss narrowed from the same period of the previous year. - FY2022-Q3MaterialisedAnnual report
「As a result of strong orders and revenue from some customers, steelmaking revenue increased 35.0% year on year to ¥781 million. However, the segment loss was ¥237 million, compared with a loss of ¥152 million in the same period of the previous year, partly due to soaring material purchase prices.」
Surging purchase prices for metal materials continued to materialize in actual results as higher costs and an expanded loss in the steelmaking business. - FY2022-Q2MaterialisedAnnual report
「Costs increased, including as a result of surging purchase prices for certain materials, and segment profit or loss was a loss of ¥144 million, compared with a loss of ¥98 million in the same period of the previous year.」
Surging purchase prices for metal materials materialized as higher costs and became a factor behind the expanded loss in the steelmaking business. - FY2022-Q1RestatedAnnual report
「Overseas, too, uncertainty continued amid the rapid spread of COVID-19 variants and rising resource prices, among other factors.」
The company described the external environment of continued resource price increases and reconfirmed the circumstances surrounding risks related to metal material prices and procurement conditions. - FY2021First statedAnnual report
「Depending on the circumstances, including significant price increases or procurement disruptions, this could have a substantial impact on business performance.」
For metal materials including iron, stainless steel, chromium and nickel, the company independently disclosed for the first time fluctuations in procurement prices, quantities and lot sizes due to market conditions as a major risk. It also explained risk mitigation through transactions with multiple suppliers.