TOPY INDUSTRIES, LIMITED
7231・Prime Market・Transportation Equipment
Steel Segment
A materials segment supplying construction materials domestically and internationally, centered on electric-furnace steelmaking and bar/shape steel rolling
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (segment total, including intersegment) | ¥109,727 million | ¥120,530 million | ↓ |
| Sales to external customers | ¥89,226 million | ¥102,618 million | ↓ |
| Segment profit (operating profit) | ¥2,470 million | ¥6,355 million | ↓ |
Business Details
The segment conducts steelmaking via electric furnaces and rolling of various bar and shape steel products, selling H-Beams and Standard Shape Steel, Deformed Shape Steel, and Deformed Bars mainly as construction materials both domestically and internationally. Deformed Shape Steel is also supplied internally to the Automotive & Industrial Machinery Parts Segment, functioning as the materials supply division that supports the Group's integrated production system. Main affiliated companies include Topy Industries, Ltd., Topy Trading Co., Ltd., Topy Kaiun Co., Ltd., Tojitsu Co., Ltd., and Meikai Recycle Center Co., Ltd.
Recent Overview
Weak demand combined with rising ferrous scrap prices caused segment profit to decline sharply by 61.1% year on year
In the Steel Segment for FY2026 (ending March 2026), domestic steel demand remained weak due to delays in building projects caused by labor shortages and other factors. In addition, from the second half of the fiscal year, ferrous scrap prices rose due to the effects of yen depreciation and other factors, and the combination of falling sales prices and rising raw material costs narrowed the price spread. Increases in various costs, including repair expenses, further weighed on results, and sales to external customers fell sharply to ¥89,226 million (down 13.1% year on year), while segment profit dropped to ¥2,470 million (down 61.1% year on year).
Key Products
Growth Drivers
- Securing price spreads by raising steel product sales prices in response to rising costs
- Cost reduction through improved stable operating rates and enhanced energy efficiency
- Strengthening profitability through enhanced sales of high-value-added products such as Deformed Shape Steel
- Advancing recycling operations and developing a circular business model (contributing to CO₂ reduction and a circular society)
- Expanding the range of integrated production products through cooperation between the Steel Segment and the Automotive & Industrial Machinery Parts Segment
Risks
- Continued sluggishness in domestic steel demand (due to delays in building projects and labor shortages, among other factors)
- Risk of fluctuations in ferrous scrap prices (rising raw material costs amid yen depreciation)
- Increased manufacturing costs due to rising energy costs
- Downward pressure on steel product sales prices (price competition amid weak demand)
- Uncertainty in the business environment due to the impact of the situation in the Middle East and other factors (not factored into the assumptions for the next-period earnings outlook)
- Indirect impact of changes in U.S. trade policy on construction and automotive demand
Last updated: June 24, 2026