European Foundry Industry Sentiment, January 2023: New year, same picture

The European Foundry Industry Sentiment Indicator (FISI) remained at the previous months level of 103.1 points. However, ferrous and non-ferrous metal foundries show different developments in January, which equalise in total. While the European iron foundries recorded a drop in the assessment of the current business situation at the start of the year, with expectations remaining unchanged, the non-ferrous foundries are more optimistic on both points than in the previous month. Even if the assessments described vary depending on the material, the overall picture since October has been relatively static. While questions such as the future level of energy prices are currently more important for the foundry industry than ever before, the industry has ultimately come through the winter without suffering existential damage so far. Fears of energy shortages have not materialised. And from today's point of view, the outlook also does not indicate a major collapse. Although the energy markets have calmed down considerably in the meantime, some foundries in Europe will be confronted with high energy prices with the beginning of the year, because new contracts, which were concluded in the light of the crisis, partly only came into force at the turn of the year. Meanwhile the Business Climate Indicator (BCI) increased in January. The increase of 0.12 points brings the index to 0.69 points. Overall, the assessment of export order-book levels and the production expectations for the months ahead strengthen the BCI in January. On the other side the expectations for selling price levels for the months ahead decreases.