Risk of Market Fluctuations in Steel Strip, Nickel and Other Raw Materials and Delayed Pass-Through to Selling Prices

「Amid ongoing price revisions driven by the weakening yen and increases in nickel prices, logistics costs and labor costs, we worked to optimize selling prices, expand sales of new products and develop new customers. As a result, profitability improved.」

「For stainless steel products, a certain level of demand remained, particularly in food and medical applications, albeit at a low level, and the shipbuilding sector remained firm. However, intensified price competition due to inflows of overseas steel and a delayed recovery in semiconductor-related demand resulted in limited growth in both volume and value.」

「For stainless steel products, demand for shipbuilding, food and pharmaceuticals, and water treatment remained firm. However, anticipated projects related to semiconductors and new energy failed to materialize, and orders for large capital investments remained sluggish. As domestic demand cooled, inventories accumulated in the market and buying restraint by authorized distributors became pronounced. Together with the inflow of low-priced imports, this accelerated the decline in product prices.」

「For stainless steel products, demand recovery was delayed for large capital projects related to automobiles, construction machinery and building materials, and semiconductor equipment, while demand for food, pharmaceuticals and water treatment remained firm. Although the company secured solid orders in certain areas, including shipbuilding, the decline in international nickel prices and inflow of low-priced imports spread expectations of lower prices in the domestic market, prompting further restraint in buying.」

「For stainless steel products, buying was held back amid expectations of lower product prices as international nickel prices gradually declined. In addition, low-priced imports continued to arrive, and domestic product prices also fell.」

「For stainless steel products, the decline in international nickel prices had leveled off, but low-priced imports continued to arrive, and domestic product prices remained on a downward trend.」

「For stainless steel products, product prices remained on a downward trend due to falling international nickel prices and the impact of low-priced imports. Domestic shipments of stainless steel remained sluggish as production adjustments in the semiconductor manufacturing equipment and construction materials sectors dragged on.」

「For stainless steel products, gradually falling international nickel prices since the end of last year brought some stability to selling prices, which had remained high. However, market shipments remained sluggish, and some large projects involved sourcing steel materials from overseas. Demand was generally sluggish for projects related to semiconductor equipment, medical care, food, pharmaceuticals, water treatment and other areas of public investment.」

「Under these conditions, the Group worked to reduce costs, particularly in its core steel pipe business, by optimizing distribution through a review of products manufactured at each site and improving production efficiency through equipment upgrades amid rising costs. It also worked to maintain sales at appropriate prices by focusing on consultative sales that address customer needs.」

「Against this backdrop, the Group focused on its core steel pipe business, working to maintain sales at appropriate prices through proactive sales activities in response to various cost increases, while producing in line with changes in demand.」

「Under these conditions, the Group focused on raising selling prices, particularly in its core steel pipe business, to reflect higher costs for raw materials, energy, auxiliary materials and other items, while working to reduce costs through efficient production in response to changes in demand.」

「Under these conditions, the Group focused on raising selling prices, particularly in its core steel pipe business, by conducting proactive sales activities to address increases in raw material, energy, auxiliary material and other costs.」

「The Group raised product selling prices, particularly in its core steel pipe business, while sales volume remained strong, supported by tight market conditions and expectations of further price increases.」

「For ordinary and stainless steel products, continued increases in material prices, auxiliary materials and other costs led to higher product selling prices. In addition, growth in sales volume contributed to an improvement in quarterly earnings.」

「For ordinary and stainless steel products, continued increases in material prices, auxiliary materials and other expenses led to higher product selling prices. In addition, reviewing low-productivity and low-margin orders and securing a certain level of production volume improved earnings for the cumulative consolidated second-quarter period.」

「Domestic steel prices, like imported steel prices, continued to rise sharply, while demand for flat steel remained tight, due to the recovery in automobile production, a recovery in capital investment and improved production levels in the manufacturing sector.」

「Steelmaking raw materials have become increasingly tight as demand rose with the recovery of the Chinese economy and the sharp rebound in automobile production, putting raw material prices on an upward trend.」

「In addition, market prices for raw materials are trending higher.」

「No new business or other risks arose during the first quarter of the current consolidated cumulative period. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「For ordinary steel products, raw material prices remained high, but domestic demand was trending lower due to a succession of typhoons and other natural disasters, the consumption tax increase and other factors. Product price adjustments did not progress, resulting in difficult earnings conditions.」

「For ordinary steel products, raw material prices remained high, while demand in construction-related and automobile-related areas weakened due to the consumption tax increase and other factors. Passing costs through to selling prices was difficult, so the company worked to maintain prices. For stainless steel products, nickel prices, a raw material for stainless steel, were trending lower from their highs, but raw material prices continued to rise, and the company proceeded with selling price adjustments.」

「For ordinary steel products, correcting selling prices to reflect higher raw material costs remained difficult, although construction-related demand, particularly for logistics warehouses in the Tokyo metropolitan area, remained firm. For stainless steel products, nickel prices, a raw material for stainless steel, surged, making earnings improvement an urgent priority.」

「Under these conditions, in the steel pipe industry, demand for redevelopment in the Tokyo metropolitan area and logistics warehouses remained strong despite continued increases in raw material prices.」

「Under these conditions, higher purchase prices for steel materials resulting from rising steelmaking raw material prices reduced the gross profit margin. The company therefore improved equipment utilization and implemented further cost reductions while working to correct selling prices.」

「Although steel material prices and production and logistics costs are rising due to labor shortages, demand for redevelopment in the Tokyo metropolitan area and major cities, as well as for hotels and logistics warehouses, remains strong.」

「Against this backdrop, in the steel pipe industry, although steel material prices are rising, demand for redevelopment in the Tokyo metropolitan area and major cities, as well as for hotels and logistics warehouses, remains strong.」

「Although steel material prices are trending higher, demand for redevelopment in the Tokyo metropolitan area and major cities, as well as for hotels and logistics warehouses, remains strong.」

「Although purchase prices for steel materials rose as steelmaking raw material prices increased, the company improved equipment utilization and implemented further cost reductions while working to correct selling prices, enabling it to secure a certain level of profit.」

「In the steel pipe industry, construction-related demand was active, driven mainly by redevelopment projects in the Tokyo metropolitan area and elsewhere and demand for hotels and logistics warehouses. Automobile-related demand also remained firm, and demand for steel pipes was trending higher. At the same time, supply and demand for the steel materials used as inputs became increasingly tight.」

「In the steel pipe industry, although steel material prices continued to rise, construction demand for redevelopment projects in the Tokyo metropolitan area and elsewhere, hotels and logistics warehouses remained strong, as did automobile-related demand.」

「Steelmaking raw materials have been subject to intermittent price increases since last year, but unstable supply and demand conditions have delayed efforts to correct product prices in the market.」

「For ordinary steel products, surging steelmaking raw material prices prompted steelmakers, particularly blast-furnace operators, to announce price increases for steel products, making market conditions unstable.」

「As raw material prices rose, purchase prices also trended higher. The company implemented further cost reductions while working to maintain production volumes and selling prices, enabling it to secure a certain level of profit.」

「Market prices remained unstable partly because announcements of reductions in China's steelmaking capacity caused fluctuations in the prices of steelmaking raw materials and scrap.」

「The Group monitors market prices on an ongoing basis and negotiates prices with trading companies. However, if material prices rise sharply, material costs and purchase prices for products increase, making the prompt pass-through to selling prices a challenge, and earnings are squeezed until prices rise to appropriate levels」