The invasion of Ukraine has accelerated the rise in the prices of raw materials, gas and electricity that form the backbone of our production system. Now the real risk for foundries is that of soon running out of supplies, in particular of pig iron.
Russia and Ukraine are world leaders in the production of crucial commodities for all Italian manufacturing, such as cast iron, aluminum, copper, nickel. The stocks, which obviously depend on the individual producers, could run out more or less quickly, from a few weeks to a few months. Furthermore, Russia is among the world’s largest producers of oil and natural gas: the rise in energy costs has a dramatic impact on the income statements of energy-intensive companies such as foundries.
With the hope of immediate peace negotiations, this situation leads us, however, to ask for the introduction of measures that will allow companies to contain any losses on the production front, curb any speculative moves in the bud.