Rising Raw Material Prices, Supply Shortages and Quality Problems
First written in FY2016. 6 of 14 entries say "Worsened", first in FY2022-Q2. Latest entry: FY2026.
Shin-Etsu Polymer moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 24 of 53 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Regarding soaring prices for raw materials and other items due to heightened tensions in the Middle East, we will gather information, communicate closely with customers and business partners, and take appropriate action to conduct transactions at fair prices.」
Higher raw material prices associated with heightened tensions in the Middle East were identified as a new and specific cost pressure, with transactions at fair prices and information gathering cited as countermeasures. - FY2024-Q3RestatedAnnual report
「In Japan, corporate production activities gradually recovered as component shortages eased, and capital investment and private consumption also improved.」
Supply-side constraints have eased as component shortages have eased. However, prolonged inflation continues in the global economy, and the risk of higher costs remains. - FY2024-Q2Component shortages eased, but inflation and high prices continuedAnnual report
「In Japan, corporate production activities gradually recovered as component shortages eased, and capital investment and private consumption also improved.」
Supply-side constraints were partly resolved as component shortages eased, while prolonged inflation and rising prices continued in the global economy, leaving supply-risk mitigation and cost-increase risks coexisting. - FY2024-Q1Supply constraints eased, but high energy and consumer prices continuedAnnual report
「During the three-month consolidated period, the global economy gradually recovered as increased movement of people and the normalization of supply chains offset continued high energy prices and inflation.」
Supply chains normalized, while high energy prices and inflation continued, leaving a combination of partially easing risks and ongoing risks related to raw material prices and supply. - FY2023-Q3RestatedAnnual report
「Japan's economic recovery in production slowed due to soaring resource prices, but corporate capital investment recovered and private consumption gradually improved.」
The slowdown in the recovery of production caused by soaring resource prices continues, and recognition of cost and supply risks arising from higher raw material prices remains in place. - FY2023-Q2WorsenedAnnual report
「During the six-month consolidated period, the global economy was gradually recovering as the transition to a new phase of living with COVID-19 progressed, but downside risks to the economy increased due to rapid inflation and supply-side constraints, among other factors.」
Rapid inflation and supply-side constraints were cited as sources of uncertainty in the business environment during the quarter, strengthening recognition of risks related to raw material prices and shortages. - FY2023-Q1WorsenedAnnual report
「During the three-month period ended this first quarter, uncertainty about the outlook increased because of fluctuations in financial and capital markets, in addition to higher raw material prices and supply constraints caused by the prolonged conflict in Ukraine and restrictions on economic activity in China.」
Higher raw material prices and supply constraints were explicitly identified as business-environment risks during the quarter, alongside the prolonged conflict in Ukraine and the impact of restrictions on economic activity in China. - FY2022WorsenedAnnual report
「We will address the increase in costs caused by higher raw material prices by revising product prices and improving production efficiency.」
The increase in costs caused by higher raw material prices was explicitly identified as an issue to address during the fiscal year, with price revisions and improved production efficiency cited as countermeasures. Semiconductor shortages were also identified as a source of uncertainty in the business environment. - FY2022-Q3RestatedAnnual report
「During the nine-month consolidated period, the global economy showed broader signs of recovery, but uncertainty about the outlook increased due to the renewed spread of COVID-19, soaring raw material prices and semiconductor shortages, among other factors.」
Higher raw material prices and semiconductor shortages were cited as continuing sources of uncertainty in the business environment from the previous quarter, indicating that recognition of raw material and supply risks remains in place. - FY2022-Q2WorsenedAnnual report
「During the six-month period ended this second quarter, signs of recovery were spreading across the global economy, but the renewed spread of COVID-19, rising raw material prices and shortages of semiconductor supplies increased uncertainty about the outlook.」
Higher raw material prices and semiconductor shortages were identified as actual sources of uncertainty in the business environment during the quarter, reinforcing the previously recognized risks related to raw materials and supply. - FY2017-Q3MaterialisedAnnual report
「Sales of functional compounds declined due to lower demand resulting from production adjustments by domestic automakers and the decline in naphtha prices.」
The disclosure describes a case in which fluctuations in naphtha prices affected sales of functional compounds. As prices declined, this is recorded as an impact from fluctuations in raw material prices. - FY2016First statedAnnual report
「Many of the Group's products use petrochemical products as their principal raw materials. Market fluctuations in crude oil and naphtha prices could drive up raw material costs and affect the Group's operating performance. In addition, unforeseen events affecting suppliers, or quality issues or shortages involving materials and components, could affect the Group's production activities and operating performance.」
The Group identifies prices, suppliers, quality and shortages as risks arising from its reliance on petrochemical raw materials.