CAEF - The European Foundry Association

European foundry industry sees further decline in FISI - The European Foundry Industry Sentiment Indicator (FISI) has recorded again a decline, reinforcing the negative trend observed in August. With a decrease of 3.1 index points, the index now stands at 92.9, down from 96.0 last month.

The foundry industry is contending with a multitude of challenges, each contributing to the observed decline. Primarily, a notable reduction in overall production levels has been evident in recent months. Moreover, the scrap index, though showing a slight decrease in recent months, is still maintaining an elevated level. Many foundries are greatly concerned about the uncertainty surrounding the pricing and availability of raw materials and scrap in the coming months and years.

Furthermore, the possible effects of regulatory measures like the Carbon Border Adjustment Mechanism (CBAM) are not clear yet, adding to the worries of the industry. These combined factors collectively underscore the existing pressures on the foundry sector.

Meanwhile the Business Climate Indicator (BCI) stands at ‑0.36 index points in September. This marks the third consecutive time that the BCI is below the critical threshold of 0 index points. Even though the index improved as little as 0.05 index points from last month the situation is still very tense and, in some parts, pessimistic. The prevailing conditions echo those experienced in August 2023, with an evident feeling of uncertainty in the air. The negative BCI can be attributed, in part, to a less favorable assessment of order-book levels. Additionally, the observed trend in production over the past few months had a negative impact.

The FISI – European Foundry Industry Sentiment Indicator – is the earliest available composite indicator providing information on the European foundry industry performance. It is published by CAEF the European Foundry Association every month and is based on survey responses of the European foundry industry. The CAEF members are asked to give their assessment of the current business situation in the foundry sector and their expectations for the next six months.

The BCI – Business Climate Indicator – is an indicator published by the European Commission. The BCI evaluates development conditions of the manufacturing sector in the euro area every month and uses five balances of opinion from industry survey: production trends, order books, export order books, stocks and production expectations.

Source: CAEF The European Foundry Association