Japanese steel company Tokyo Steel Manufacturing announced an unconsolidated operating loss of 2.31 billion yen in the first quarter ended June 30, 2026-27 fiscal year, compared with an operating profit of 4.77 billion yen in the same period of the previous fiscal year.
The company's net sales decreased 1.3 percent year-on-year to 72.93 billion yen ($448.90 million), while net income decreased 49.5 percent to 1.88 billion yen ($11.57 million). Tokyo Steel said that the profit from the sale of investment securities and other assets supports its net result.
According to the company, the sharp rise in scrap metal prices amid escalating tensions in the Middle East has significantly affected its profitability. Although Tokyo Steel has implemented three product price increases since the end of the previous fiscal year, these increases have not yet been fully reflected in actual shipping prices.
In the quarter, Tokyo Steel's steel production decreased 1.5 percent year-on-year to 838,000 tons, while rolled products decreased 0.9 percent to 767,000 tons. Shipments of steel products totaled 739,000 tons, down 0.9 percent from the same period last year, including 629,000 tons supplied to the domestic market and 109,000 tons exported.
The average selling price of the company's steel products increased by 600 yen/mt ($3.69/mt) year-on-year to 96,800 yen/mt ($595.84/mt), while its average purchase of scrap
