Nippon Denko Co., Ltd.
5563・Prime Market・Iron & Steel
Ferroalloy Business
Shin Nippon Denko's core segment, centered on the manufacturing and sale of ferroalloys
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (Q1 FY2026, ending March 2026) | ¥12,345 million | ¥13,308 million (Q1 FY2025, ending March 2025) | ↓ |
| Segment ordinary income/loss (Q1 FY2026, ending March 2026) | -¥232 million | -¥315 million (Q1 FY2025, ending March 2025) | ↑ |
| Underlying ordinary income - domestic (Q1 FY2026, ending March 2026) | Approx. ¥500 million (¥0.5 billion per supplementary materials) | Approx. ¥100 million (¥0.1 billion per supplementary materials, Q1 FY2025, ending March 2025) | ↑ |
| Underlying ordinary income/loss - overseas (Q1 FY2026, ending March 2026) | Approx. -¥400 million (-¥0.4 billion per supplementary materials) | Approx. -¥300 million (-¥0.3 billion per supplementary materials, Q1 FY2025, ending March 2025) | ↓ |
| Segment net sales (full year FY2025, ending March 2025) | ¥48,440 million | - | — |
| Segment ordinary income/loss (full year FY2025, ending March 2025) | -¥2,127 million | - | — |
Business Details
This segment manufactures and sells ferroalloys such as Ferromanganese/Silicomanganese and Ferrosilicon, and also handles the sale of special metal products such as Ferrochrome/Ferrovanadium, Warehousing and Port Cargo Handling, and the holding of Manganese Mining Interests. In addition to domestic manufacturing facilities, the segment operates overseas through two equity-method affiliates (Pertama Ferroalloys SDN.BHD. and Kudumane Japan G.K.). This segment accounted for approximately 63.6% of consolidated net sales in the first quarter of FY2026 (ending March 2026).
Recent Overview
Domestic operations performed well, with underlying ordinary income up ¥400 million year on year; overseas losses continued
In Q1 FY2026 (ending March 2026), Ferroalloy Business segment net sales were ¥12,345 million (down ¥963 million year on year), and segment ordinary loss was -¥232 million (an improvement from -¥315 million in the same period of the prior year). The domestic ferroalloy business saw favorable operations, with underlying ordinary income increasing ¥400 million year on year to ¥500 million. The overseas ferroalloy business posted an ordinary loss of ¥400 million, roughly in line with the same period of the prior year. The full-year outlook incorporates a shift to a positive inventory effect from rising manganese ore market prices, and ordinary income is expected to reach ¥1,500 million (an improvement of ¥3,600 million year on year). The European high-carbon ferromanganese market price was $1,291/t in Q1 FY2026, exceeding the same period of the prior year ($1,151/t), and the manganese ore market price also rose to $5.2/Mn% from $4.6/Mn% in the same period of the prior year.
Key Products
Growth Drivers
- Shift to a positive inventory effect accompanying the rise in manganese ore market prices (expected to contribute to ordinary income for the full year FY2026)
- Improved earnings from thorough cost minimization and favorable operations in the domestic ferroalloy business
- Recovery in ferroalloy product market conditions (European and U.S. high-carbon ferromanganese prices rose year on year)
- Market development leveraging the advantage of hydroelectric green power in the overseas business (Pertama Ferroalloys)
- Narrowing of losses through earnings improvement measures (underlying ordinary loss in the overseas ferroalloy business expected to narrow from -¥1.0 billion in the prior period to -¥0.7 billion)
- Strengthening long-term competitiveness through GX investment (R&D for carbon-free ferroalloy manufacturing)
Risks
- Risk of fluctuations in manganese ore market prices (a rising market improves inventory effects, while a declining market directly impacts earnings)
- Risk of sustained weakness in ferroalloy product market prices (continued oversupply in production and sales, centered on India)
- Risk of demand decline due to sluggish domestic steel production
- Risk of continued losses at overseas equity-method affiliates (the overseas ferroalloy business posted an ordinary loss of -¥500 million again in Q1 FY2026)
- Risk of rising manufacturing costs due to yen depreciation and higher energy costs (the exchange rate assumption for Q2 onward is ¥155/$)
- Risk of decreased production and sales due to regular maintenance shutdowns
Last updated: March 26, 2026