The Non-Ferrous Foundry Market in 2024: Resilience and Challenges in a Complex Year
The non-ferrous foundry market experienced significant turbulence in 2024, recording an overall contraction in production of 6.1%, equivalent to a reduction of 50,506 tons compared to the previous year. Volumes slipped from 827,967 tons in 2023 to 777,461 tons in 2024, painting a picture that, while negative, showed relatively robust resilience compared to other industrial sectors.
The decline was primarily driven by the decline in aluminum, which, maintaining a share of over 80% of the total, had a decisive influence on the performance of the aluminum sector and the entire industry. On the contrary, minor alloys – zinc, copper, brass, and bronze – showed overall stability or even slight signs of growth, although they were unable to offset the negative impact of the decrease in aluminum production.
Despite the overall unfavorable result, the sector demonstrated remarkable resilience. Compared to the double-digit decline that severely impacted the ferrous metals sector, this result signals relative stability and the ability to adapt to adverse market conditions.
Economic Pressures and Cost Dynamics in the Sector
Overall revenue contracted 9.2% compared to 2023, a particularly significant figure given the rising prices of the main metal raw materials used by non-ferrous metal foundries, including primary aluminum and secondary alloys. This dynamic highlighted the growing economic pressures affecting the sector.
The situation was partially mitigated by the reduction in energy inputs—electricity and natural gas—which showed a downward trend on average over the year. However, given the predominant weight of metal components in the industry's industrial costs, the decline in revenue suggests significant difficulties in passing on cost increases along the value chain, resulting in pressure on companies' operating margins.
Historical Evolution of Aluminum Smelters in Europe: 25 Years of Transformation
The long-term analysis, covering a 25-year period from 2000 to 2024, reveals that overall production decreased from 957,900 to 777,461 tons, recording a CAGR (Annual Growth Rate) of -0.85%. This moderate long-term decline is divided into distinct phases that reflect global economic cycles and structural transformations in the sector.
The 2000-2008 period, characterized by modest but steady pre-crisis growth (CAGR +0.36%), peaked in 2007 with over 1,080,000 tons produced. The 2009-2011 period saw a strong post-financial crisis rebound, with an impressive CAGR of +21.8% after hitting an all-time low of 666,000 tonnes in 2009.
The stabilizing years of 2012-2019 saw a stabilization with limited variations (CAGR +0.65%), while the post-COVID period of 2020-2024 was a fluctuating and particularly challenging phase, with an average annual decline of -3.28%. This analysis confirms a sector that, despite the global crises, has maintained a certain underlying stability, demonstrating a resilience that has limited the negative effects in the medium term.
Detailed Analysis by Metal Type: Aluminum Dominance and Specialized Niches
Aluminum
With 628,581 tons produced in 2024, aluminum represents 81% of total non-ferrous castings production, confirming its dominant position despite a contraction from 83% in 2023. Production saw a significant decline of 8.2%, equivalent to a reduction of over 56,000 tons, directly reflecting the decline in orders in the transportation equipment sector (-14%), historically the main outlet market for aluminum castings.
The long-term performance of the aluminum sector mirrors that of the non-ferrous sector as a whole. Production increased from 730,000 tons in 2000 to 628,581 tons in 2024, with a CAGR of -0.61%. The path is divided into distinct phases: robust pre-crisis growth (2000-2008, CAGR +3.11%), notable post-crisis rebound (2009-2011, CAGR +24.1%), almost perfect stabilization (2012-2019, CAGR +0.06%) and a new marked decline in the recent period (2020-2024, CAGR -3.92%).
Zinc
Zinc represented one of the few bright spots in 2024, recording a production increase of 4,637 tons (+5.0%) to reach a total of 97,369 tons. Despite representing approximately 13% of total non-ferrous castings production, its positive performance significantly contributed to limiting the overall decline in the sector.
The increase is attributable to stronger demand in specific application areas, such as furniture components, the electrical industry, and certain products characterized by high replacement rates. The historical series shows substantial stability: from 95,600 tons in 2000 to 97,369 tons in 2024 (CAGR +0.07%), with a particularly positive acceleration in the 2020-2024 period (CAGR +6.45%), signaling renewed interest in zinc in specific niches.
Brass, Bronze, and Copper Alloys
The red metals sector—brass, bronze, and copper alloy castings—produced 48,790 tons in 2024, showing stable and positive performance with growth of 1.6%. These alloys, used in precision machining, valves, pumps, and small technical parts, benefit from a high degree of specialization that makes them relatively less vulnerable to market fluctuations.
However, long-term analysis reveals a structurally negative trend: from 123,700 tons in 2000 to 48,790 tons in 2024, an overall decline of more than 60% and a CAGR of approximately -3.1% annually. The post-pandemic period (2020-2024) showed signs of recovery (CAGR +6.3%), likely linked more to a cyclical rebound than a structural trend reversal.
Magnesium
Magnesium experienced the most significant decline among non-ferrous metals, with a reduction of 385 tons (-15.5%) and total production of only 2,099 tons, representing just 0.3% of the total. This metal, primarily used in light alloys for the automotive and aerospace industries, was severely impacted by fluctuations in production costs and declining demand.
Problems in the sector include difficulties in managing raw materials, high energy costs, and increasingly stringent environmental regulations. In Italy, magnesium foundries are now very limited, penalized by international competition, particularly from China, which offers more competitive prices. Magnesium processing also presents high risks of fire and explosion, requiring highly specialized equipment and ongoing investments in safety.
Target Markets: A Diverse Landscape of Challenges and Opportunities
Automotive Sector
The transportation sector remains the primary market for non-ferrous castings, absorbing 403,975 tons in 2024, equal to 52.0% of total production. However, it recorded a significant contraction of 14.1%, reflecting the critical phase of the global automotive industry. The transition to electric mobility, while strategic, has generated investment uncertainty and production slowdowns, exacerbated by declining demand in key markets.
Other Sectors: Resilience of Mechanical Engineering and Construction Slump
The construction market, second in size with 118,773 tons (15.3% of the total), contracted 10.9%, reflecting the slowdown in the construction sector after strong growth in previous years. Electrical engineering contracted 6.1%, with production reaching 69,972 tons.
Bucking the trend, the mechanical engineering sector held up well, growing 3.5% (63,414 tons), benefiting from its diversified structure and its connection to highly specialized niches. The "other uses" segment was particularly impressive, recording an exceptional increase of 132.9% to 61,714 tons.
European Context: A Picture of Shared Challenges
An analysis of Eurostat data for 2024 highlights a widespread decline in the production of light castings across Europe, including countries that had shown momentum in 2023, such as Turkey, France, and Germany. Only Spain showed greater relative resilience. Regarding castings of other non-ferrous metals, the decline affected almost all major European countries in 2024, with the exception of Italy, which showed a tentative sign of recovery.
Aluminum foundries in Europe are facing similar structural challenges, from the energy transition to global competitive pressures, creating a landscape that requires innovative strategies to maintain competitiveness in international markets.
Source: In Fonderia – Il magazine dell’industria fusoria italiana