MITSUI & CO., LTD.

Business Details

Conducts resource development of steel and non-ferrous metal materials in overseas regions including Australia, Chile, and Brazil, while also engaging in manufacturing, sales, and trading of raw materials and products in Japan and overseas regions. Holds major assets including the Australian iron ore business (Mitsui Iron Ore Development, etc.), coking coal business (Mitsui Resources), Chilean copper mining business (via Japan Collahuasi Resources), and the Vale Equity Stake in Brazil. Characterized by a commodity price-linked revenue structure tied to iron ore prices, coking coal prices, and copper prices.

Recent Overview

Profit decreased due to falling commodity prices, but Vale dividends increased and the Rhodes Ridge investment progressed

In the FY2026 (ending March 2026) Metal Resources segment, gross profit decreased by ¥14.8 billion year-on-year due to declining iron ore prices (Australian iron ore business -¥8.4 billion) and declining coking coal prices (Mitsui Resources -¥7.3 billion). Japan Collahuasi Resources also saw equity in earnings deteriorate by ¥8.3 billion due to decreased volume and increased costs. On the other hand, dividends from Vale increased by ¥8.5 billion year-on-year (¥43.5 billion). Large-scale investment in the Rhodes Ridge iron ore business (acquisition of property, plant and equipment of -¥723,800 million) was executed, and segment total assets increased by ¥1,326,557 million from the end of the prior period. Profit for the year attributable to owners of the parent was ¥253,604 million (down ¥31,762 million, or -11.1%, year-on-year).

Key Products

Growth Drivers

• Expansion of dividends received driven by increased Vale dividends (¥43.5 billion in FY2026 (ending March 2026), +¥8.5 billion year-on-year)
• Strengthening of the long-term earnings base through large-scale investment in the Australian Rhodes Ridge iron ore business (property, plant and equipment +¥857,100 million)
• Expansion of demand for iron ore and coking coal accompanying the medium- to long-term increase in crude steel production centered on India and Southeast Asia
• Increased demand for non-ferrous metals such as copper and nickel driven by EV adoption and electrification (related to Energy Transition)
• Boosting effect on yen-denominated profit from yen depreciation and Australian dollar appreciation (sensitivity of ¥4.6 billion per ¥1 change in USD, ¥1.8 billion per ¥1 change in AUD)
• Rising coking coal prices and rising copper prices are expected to be profit-increasing factors in the FY2027 (ending March 2027) earnings forecast

Risks

• Risk of declining commodity prices for iron ore, coking coal, copper, etc. (sensitivity of ±¥3.0 billion in profit for the year per US$1/ton change in iron ore price)
• Adverse impact on steel and non-ferrous metal demand from the slowdown in the Chinese economy (continuing real estate market downturn and weak domestic demand)
• Foreign exchange risk from AUD/USD fluctuations (sensitivity of ±¥1.8 billion in profit for the year per ¥1 change in AUD)
• Risk of decreased volume and increased costs in the Chilean copper mining business (Collahuasi)
• Development and operational risks associated with the large-scale investment in the Rhodes Ridge iron ore business (acquisition of property, plant and equipment of -¥723,800 million)
• Increasing costs related to climate change, natural capital, and human rights response in mine operations, and declining ore grades/reserves at existing mines
• In the FY2027 (ending March 2027) forecast, decreased iron ore volume and increased costs are expected to continue to be profit-decreasing factors