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Italian Foundries: No Signs of Recovery Yet in Early 2025

Issued at 2025-05-22



As the Italian foundry association Assofond reports in its latest press release, the sector continues to face significant challenges. Despite a slight economic uptick in Q1 2025 compared to the previous quarter, there are still no concrete signs of a true recovery.

According to Assofond's Study Center, the modest increase in production and turnover—+6.4% and +9.2% respectively—is mainly due to more working days after the holiday period, not to a substantial improvement in demand. Compared to Q1 2024, overall production fell by -9.5%, with -8.5% in ferrous and -11.9% in non-ferrous foundries.

Assofond President Fabio Zanardi summarizes the situation clearly: It feels like we’ve hit bottom, but there are still no real signs of recovery. Order books remain weak, and expectations are based more on hope than on tangible market signals. Global uncertainties and economic policy risks continue to dampen investment and strategic planning.

Order visibility is at a record low: just 2.2 months for cast iron, 0.8 for steel, and 2.5 for non-ferrous alloys. Although business sentiment indicators like the March Act Index slightly improved (to 53.2), mid-term expectations have already declined again.

Meanwhile, soaring energy costs are putting margins under massive pressure. Electricity prices in Q1 2025 rose by nearly +50% year-on-year, worsening the already fragile cost structure of many foundries.

In short: while the sharp decline of 2024 may have slowed, the outlook remains bleak—with little momentum for a real turnaround.


Source: Foundry Planet



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