Risks from Domestic Economic Conditions, Demand Volatility and Competitive Disadvantage
First written in FY2016. 11 of 38 entries say "Worsened", first in FY2020-Q1. Latest entry: 2026-10-22.
Uex moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2020: 29 of 54 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2026Demand remains stagnant, but signs of partial recovery are emergingAnnual report
「Stainless steel production in calendar 2025, measured on a hot-rolled steel basis, was 2.068 million tonnes, up 1.1% year on year and above the prior-year level. However, the distribution market remained sluggish as overall demand stagnated. Meanwhile, signs of recovery emerged in some sectors from the second half of the fiscal year.」
Production increased 1.1% year on year, while broad-based demand stagnation and weakness in the distribution market continued. Signs of recovery in some sectors during the second half of the fiscal year were also noted. - FY2026-H1WorsenedAnnual report
「In the stainless steel industry to which our corporate group belongs, nickel prices remained weak and the yen appreciated. Although distributors worked to maintain prices, stainless steel market conditions remained depressed. In addition, the distribution market continued to lack momentum as overall demand stagnated.」
Weak nickel prices, yen appreciation, depressed stainless steel market conditions and broad-based demand stagnation were cited together, indicating that the deterioration in domestic demand and market conditions is continuing. - FY2025-H1MaterialisedAnnual report
「In the stainless steel industry to which our corporate group belongs, raw material prices, including nickel, remained weak. Although distributors worked to maintain prices, stainless steel market conditions were soft. In addition, the distribution market remained sluggish as overall demand stagnated.」
Broad-based demand stagnation and soft stainless steel market conditions were identified as the actual business environment, indicating that risks related to domestic demand and the competitive environment have materialized. - FY2024WorsenedAnnual report
「Meanwhile, stainless steel production in calendar 2023, measured on a hot-rolled steel basis, was 1.949 million tonnes, down 20.1% year on year due to declining demand.」
Against a backdrop of declining demand, stainless steel production totaled 1.949 million tonnes, down 20.1% year on year. In addition to weak raw material prices, soft market conditions and a stagnant distribution market, geopolitical risks in the Middle East and downside risks to the Chinese economy were also cited, broadening the factors contributing to deterioration in demand and the competitive environment. - FY2024-Q3WorsenedAnnual report
「In the stainless steel industry to which our corporate group belongs, raw material prices, including nickel, remained weak. Although distributors continued working to maintain prices, stainless steel market conditions were soft. In addition, overall demand trended downward, resulting in a sluggish distribution market.」
Weak raw material prices, soft stainless steel market conditions and broad-based demand decline were cited together, indicating that domestic demand and market conditions continue to deteriorate. - FY2024-Q2WorsenedAnnual report
「In the stainless steel industry to which our corporate group belongs, raw material prices, including nickel, remained weak. Although distributors continued working to maintain prices, stainless steel market conditions were soft. In addition, overall demand trended downward, resulting in higher market inventories and a continued lack of activity in the distribution market.」
Weak raw material prices, soft stainless steel market conditions, broad-based demand decline and higher market inventories were cited together, indicating that domestic demand and market conditions continue to deteriorate. - FY2024-Q1WorsenedAnnual report
「In the stainless steel industry to which our corporate group belongs, raw material prices, including nickel, remained weak. Although distributors worked to maintain prices, stainless steel market conditions were soft. In addition, overall demand trended downward, resulting in higher market inventories and a sluggish distribution market.」
Weak raw material prices, soft stainless steel market conditions, declining demand and higher market inventories were all cited, illustrating the deterioration in domestic demand and market conditions. - FY2023WorsenedAnnual report
「The domestic economy is expected to remain difficult to predict, as stagnant demand, higher prices due to rising electricity, energy and other material costs, and supply-chain instability caused by intensifying US-China tensions are causes for concern.」
Weak demand, rising electricity, energy and other material costs, higher prices, and supply chain instability caused by US-China tensions were collectively identified as new external-environment concerns. - FY2023-Q3Economic recovery, but the external environment remains uncertainAnnual report
「During the first 3 quarters, Japan's economy gradually recovered as vaccinations against the novel coronavirus infection became widespread and restrictions on movement were eased, promoting the normalization of social and economic activity. However, uncertainty persisted due to resource and energy price trends, inflation associated with sharp exchange-rate fluctuations and the prolonged war in Ukraine, and the situation remained difficult to predict.」
Although the economy showed signs of recovery as vaccinations became widespread and restrictions on movement were eased, uncertainty continued due to resource and energy prices, sharp exchange-rate fluctuations, inflation and the prolonged war in Ukraine. - FY2023-Q2Market conditions firm, but the external environment remains uncertainAnnual report
「During the second quarter, Japan's economy gradually recovered as vaccinations against the novel coronavirus infection became widespread and restrictions on movement were eased, promoting the normalization of social and economic activity. However, uncertainty persisted due to resource-price trends, inflation associated with sharp exchange-rate fluctuations and the prolonged war in Ukraine, and the situation remained difficult to predict.」
Although the economy showed signs of recovery as vaccinations became widespread and restrictions on movement were eased, uncertainty continued due to resource prices, sharp exchange-rate fluctuations, inflation and the prolonged war in Ukraine. - FY2023-Q1Market conditions rise, but economic outlook remains uncertainAnnual report
「During the first quarter, Japan's economy showed signs of normalization in social and economic activity as restrictions on movement associated with the spread of the novel coronavirus infection were eased. However, the outlook remained uncertain due to unresolved factors including higher crude oil and other resource prices, sharp exchange-rate fluctuations and the prolonged war in Ukraine. In the stainless steel industry in which our corporate group operates, manufacturers implemented substantial price increases in response to movements in raw material prices, including nickel. As a result, stainless steel market conditions in the distribution market rose significantly, and supply and demand remained tight.」
Although the easing of restrictions on movement and moves toward normalization of social and economic activity were reported, uncertainty over the economy continued due to higher resource prices, sharp exchange-rate fluctuations and the prolonged war in Ukraine. Stainless steel market conditions rose significantly, and supply and demand tightened. - FY2022WorsenedAnnual report
「The situation remained uncertain due to semiconductor shortages, surging crude oil and other resource prices, and sharp exchange-rate fluctuations. In addition, the invasion of Ukraine by Russia occurred in late February, heightening concerns worldwide about the economic outlook.」
In addition to semiconductor shortages, surging resource prices and sharp exchange-rate fluctuations, the invasion of Ukraine by Russia was identified as a new source of uncertainty. Uncertainty in the external environment has increased alongside references to market recovery. - FY2022-Q3WorsenedAnnual report
「The state of emergency and other restrictions were lifted in September, and social and economic activity gradually showed signs of recovery. However, the outlook for the domestic economy remained uncertain amid the spread of new variants. The situation remained difficult to predict due to the impact of semiconductor shortages on various industries and surging crude oil and other resource prices.」
Although social and economic activity showed signs of recovery, uncertainty in the domestic economy became more apparent and continued due to new variants, semiconductor shortages and surging resource prices. - FY2022-Q2Market conditions firm, but economic outlook remains uncertainAnnual report
「During the second quarter, Japan's economy remained in a difficult condition as the state of emergency was extended due to the spread of the novel coronavirus infection, weighing on personal consumption and restricting economic activity. The outlook showed some brighter signs, including the lifting of the state of emergency in Japan as vaccinations progressed, but uncertainty persisted, with crude oil prices surging and difficulties emerging in procuring components.」
The report noted the extension of the state of emergency, weak personal consumption and restrictions on economic activity, while also indicating brighter signs from the progress of vaccinations and the lifting of the declaration. Improvements and uncertainty coexisted in the demand and economic environment. - FY2022-Q1MitigatedAnnual report
「In the stainless steel industry in which our corporate group operates, manufacturers gradually raised prices across product categories in response to higher raw material prices, and the stainless steel market remained firm. In addition, the distribution market showed signs of recovery as supply and demand tightened with the recovery in domestic and overseas demand.」
Price increases driven by higher raw material prices, tighter supply and demand, and the recovery in domestic and overseas demand indicated signs of improvement from the extremely challenging market and demand conditions of the previous fiscal year. However, uncertainty over the economic outlook due to the spread of infection and the state of emergency remains. - FY2021MaterialisedAnnual report
「In the stainless steel industry, capital investment was postponed or canceled in various fields due to the spread of the novel coronavirus infection, and supply and demand deteriorated sharply. … Stainless steel production in calendar 2020, on a hot-rolled steel basis, fell 18.6% year on year to 2.172 million tons, substantially below the previous year.」
Postponed and canceled capital investment due to the infection, deteriorating supply and demand, and challenging conditions in the domestic distribution market continued, while stainless steel production fell 18.6% year on year. The risk from fluctuations in domestic demand has materialized in actual results. - FY2021-Q3MaterialisedAnnual report
「During the first 3 quarters, Japan's economy continued to see a significant deterioration in corporate earnings due to the spread of the novel coronavirus infection. Employment conditions weakened and capital investment also declined. Following the lifting of the state of emergency in May of the previous year, social and economic activity gradually resumed, and some signs of improvement emerged in personal consumption and production activity. However, infections began spreading again in winter, and the outlook for the domestic economy remained uncertain.」
Deterioration in corporate earnings, weaker employment conditions and declining capital investment due to the spread of the infection continued, while the renewed spread of infections in winter sustained uncertainty over the outlook for the domestic economy. - FY2021-Q1MaterialisedAnnual report
「In the stainless steel industry in which our corporate group operates, capital investment was postponed or canceled in various fields due to the spread of the novel coronavirus infection, and supply and demand deteriorated sharply. The stainless steel market weakened, and the domestic distribution market faced extremely challenging conditions.」
The report states that the spread of the novel coronavirus infection resulted in postponed and canceled capital investment, a sharp deterioration in supply and demand, weaker market conditions and an extremely challenging domestic distribution market. - FY2020WorsenedAnnual report
「As a result, stainless steel production in calendar 2019 fell 9.7% year on year to 2.667 million tons, below the previous year's level for the first time in 4 years and the lowest production level in the past 10 years.」
Stainless steel production fell 9.7% year on year to 2.667 million tons, the lowest level in the past 10 years. In addition to deterioration in domestic demand and market conditions, concerns have emerged over contraction in economic activity due to the outbreak of a novel virus. - FY2020-Q3WorsenedAnnual report
「During the first 3 quarters, Japan's economy remained on a recovery trend in terms of employment and income, but personal consumption remained sluggish due to the backlash from front-loaded demand ahead of the consumption tax increase, and the economy showed signs of stagnation. Concerns grew over the impact of the prolonged US-China trade conflict on the global economy, and the outlook remained uncertain. In the stainless steel industry in which our corporate group operates, supply and demand eased across product categories, causing the stainless steel market to move somewhat lower, while inventories in the distribution market increased for some product categories.」
The report noted weak personal consumption following the backlash after the consumption tax increase, the prolonged US-China trade conflict, and easing supply and demand and rising distribution-market inventories across product categories. The soft market conditions through the previous quarter continued, and factors contributing to deterioration in demand and market conditions became more apparent. - FY2020-Q2RestatedAnnual report
「In the stainless steel industry in which our corporate group operates, supply and demand eased across product categories, causing the stainless steel market to move from flat to slightly soft.」
Supply and demand eased across product categories, confirming that the market had moved from flat to slightly soft. - FY2020-Q1WorsenedAnnual report
「In the stainless steel industry in which our corporate group operates, supply and demand eased for some product categories, causing the stainless steel market to move from flat to slightly soft.」
Supply and demand eased for some product categories, and the stainless steel market moved from flat to slightly soft. This indicates deterioration in demand and market conditions from the stable, upward trend through the previous fiscal year. - FY2019RestatedAnnual report
「In the stainless steel industry, domestic demand remained firm, mainly for construction, ships and railway cars, although demand for industrial equipment and electrical equipment fell below the previous year. As a result, stainless steel production in calendar 2018, on a hot-rolled steel basis, increased 2.4% to 2.92 million tons from 2.85 million tons the previous year.」
While demand for industrial equipment and electrical equipment fell below the previous year, domestic demand remained firm, mainly for construction, ships and railway cars, and production increased 2.4%. Demand conditions were mixed. - FY2019-Q3Market conditions rise despite looser supply and demand for some product categoriesAnnual report
「In the stainless steel industry in which our corporate group operates, demand for construction and automobiles remained firm. Although supply and demand eased for some product categories, the stainless steel market continued on an upward trend.」
Demand for construction and automobiles remained firm, and the market stayed on an upward trend, while supply and demand eased for some product categories. - FY2019-Q2MitigatedAnnual report
「In the stainless steel industry in which our corporate group operates, demand remained firm for construction, automobiles and railway cars. Supply and demand remained tight for some product categories, and the stainless steel market continued on an upward trend.」
Demand for construction, automobiles and railway cars remained firm, tight supply and demand continued, and market conditions were on an upward trend. Demand conditions remained improved. - FY2019-Q1MitigatedAnnual report
「In the stainless steel industry in which our corporate group operates, demand remained firm for construction, industrial equipment and electrical equipment. Supply and demand remained tight across product categories, and the stainless steel market continued on an upward trend.」
Demand for construction, industrial equipment and electrical equipment remained firm, tight supply and demand continued, and market conditions were on an upward trend. The environment mitigating the previous demand and market risks has continued. - FY2018MitigatedAnnual report
「In the stainless steel industry, demand for construction and containers fell below the previous year, but domestic demand remained firm, mainly for automobiles, industrial equipment and electrical equipment.」
Although demand for some applications fell below the previous year, domestic demand remained firm, mainly for automobiles, industrial equipment and electrical equipment, indicating improved demand conditions from those through the previous fiscal year. - FY2018-Q3RestatedAnnual report
「In the stainless steel industry in which our corporate group operates, demand remained firm for automobiles, ships and semiconductor manufacturing equipment. Supply and demand remained tight across product categories, and the stainless steel market continued to be stable.」
Demand for automobiles, ships and semiconductor manufacturing equipment remained firm, while tight supply and demand and stable market conditions continued. - FY2018-Q2MitigatedAnnual report
「In the stainless steel industry in which our corporate group operates, demand remained firm for automobiles, industrial equipment and semiconductor manufacturing equipment. Supply and demand remained tight across product categories, and the stainless steel market continued to be stable.」
Demand for automobiles, industrial equipment and semiconductor manufacturing equipment remained firm, and tight supply and demand continued, keeping market conditions stable. The improvement from the soft market conditions through the previous fiscal year has continued. - FY2018-Q1MitigatedAnnual report
「In the stainless steel industry in which our corporate group operates, raw material prices, including nickel, weakened, but the stainless steel market remained stable amid tight supply and demand.」
Raw material prices weakened, but the stainless steel market remained stable because supply and demand were tight. This indicates some improvement from the soft market conditions through the previous fiscal year. - FY2017-Q3MitigatedAnnual report
「As signs of a partial recovery in demand began to emerge in the domestic distribution market, the stainless steel market strengthened toward year-end.」
Partial recovery in demand continued in the domestic distribution market, and the stainless steel market strengthened toward year-end, indicating some improvement from the challenging demand and market conditions through the previous quarter. - FY2017-Q2RestatedAnnual report
「Although signs of a partial recovery in demand began to emerge in the domestic distribution market, the stainless steel market remained soft.」
Although signs of a partial recovery in demand began to emerge in the domestic distribution market, the stainless steel market remained soft, and the previous assessment of risks related to demand and market conditions remains unchanged. - FY2017-Q1MaterialisedAnnual report
「In the stainless steel industry in which our corporate group operates, raw material prices, including nickel, remained low. Although manufacturers worked to maintain prices, the stainless steel market remained soft. Supply and demand conditions in the domestic distribution market also remained challenging, following the previous fiscal year.」
The soft stainless steel market and challenging supply and demand conditions in the domestic distribution market occurred during the quarter, indicating the materialization of risks related to domestic demand and the competitive environment. - FY2016First statedAnnual report
「Our corporate group operates primarily in Japan, and trends in the domestic economy and the resulting fluctuations in demand may affect its operating results and financial position. In addition, if our corporate group's competitiveness becomes relatively inferior to that of competitors in terms of prices, delivery times or quality, this may affect its operating results and financial position.」
The main risks are fluctuations in domestic demand and declining competitiveness in terms of price, delivery times and quality.