NIPPON KINZOKU CO., LTD.
5491・Standard Market・Iron & Steel
Polished Steel Strip Business
Core business manufacturing and selling Cold Rolled Stainless Steel Strip and Polished Special Steel Strip
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (segment total) | ¥42,493 million | ¥42,500 million | — |
| Operating income (segment income) | ¥1,667 million | ¥601 million | ↑ |
| Segment assets | ¥47,948 million | ¥50,672 million | ↓ |
| Depreciation | ¥1,372 million | ¥1,351 million | ↑ |
| Increase in tangible and intangible fixed assets | ¥828 million | ¥1,115 million | ↓ |
Business Details
This is the Company Group's core segment, engaged in the manufacture and sale of Cold Rolled Stainless Steel Strip and Polished Special Steel Strip. Major customers span the automotive-related industry (domestic and overseas) as well as diverse applications including electronic components (HDDs for servers, coin batteries, mechanism parts for gaming consoles) and medical use (materials for injection needles). Sales are handled mainly through the consolidated subsidiary Nikkin Steel Co., Ltd., with overseas subsidiaries in Thailand, Malaysia, and China also handling a portion. Some manufacturing processes are outsourced to Nikkin Seisei Technics Co., Ltd.
Recent Overview
Sales roughly flat while operating income turned sharply higher due to profitability improvement measures
In FY2026 (ending March 2026), the Polished Steel Strip Business posted sales of ¥42,493 million, roughly flat (down ¥8 million, or 0.0%, year on year). Meanwhile, operating income increased by ¥1,065 million (177.2%) to ¥1,667 million from ¥601 million in the prior period. Amid continued sluggish automotive-related sales due to U.S. tariff policy and accelerating EV adoption in China, earnings improved on the back of growing demand for HDDs for servers and precision bearings driven by AI data center expansion, steady performance in electronic components, increased sales of medical-related products (injection needles) to Japan, China, and India, expanded adoption of Fine Black, and thorough price pass-through through measures such as the introduction of a surcharge system.
Key Products
Growth Drivers
- Growing demand for HDDs for servers and precision bearings accompanying AI data center expansion
- Steady sales trends in electronic components (coin batteries and mechanism parts for new gaming consoles)
- Expanded adoption of Black Decorative Stainless Steel (Fine Black) for exterior moldings on luxury vehicles by major domestic automakers, and decision to adopt the new matte-finish product
- Increased sales to Japan, China, and India in medical-related products (materials for injection needles) driven by rising demand for insulin and obesity treatment drugs
- Expanded orders for automotive-related products in India and Southeast Asia and for medical-related products in Europe, China, and India (increased recognition through use of press releases)
- Improved earnings structure through timely price pass-through of raw material, energy, labor, and freight costs via measures such as introduction of a surcharge system, and correction of pricing for low-profitability products
Risks
- Structural decline in sales of automotive-related products (for moldings, etc.) due to accelerating shift to new energy vehicles (EVs and PHVs) in the Chinese market
- Intensifying low-cost competition from local Chinese stainless steel manufacturers (continued decline in sales volume for moldings)
- Delayed recovery in automotive-related demand due to the impact of U.S. tariff policy, including the 50% additional steel tariff under Section 232 of the U.S. Trade Expansion Act
- Continued elevated raw material, energy, auxiliary material, and logistics costs and time lag in passing these through to sales prices
- Sluggish demand for export-oriented parts due to weak sales of Japanese vehicles in Europe and China
Last updated: June 25, 2026