Ceramics industry

shortage of gas certainly poses an existential risk for the industry and many foundries are already struggling on account of the heavily increased energy costs.

The invasion of Russia in Ukraine and the sanctions imposed in response have also affected the availability and costs of metals. The biggest problems are the procurement of nickel, although pig iron, scrap and aluminium are also under pressure. Production planning for foundries is very difficult in this highly unpredictable environment and subject to a high degree of uncertainty.

In the first quarter, total production of cast components dropped 1.7 percent year on year. While iron and steel foundries reported production levels steady with those of last year, nonferrous metal foundries posted a drop of 8.3 percent in production. Compared to the same period in 2019, production in both groups of foundries was still down by around 23 percent. Following the slump in revenue of around 21 percent across the industry in 2020, foundries finished off 2021 with revenue growth of 17 percent. Fuelled by the high commodity and energy prices, sales in the first quarter increased 15.8 percent compared to the first quarter 2021. The 600-odd companies operating in the industry currently employ around 66,000 workers, according to the German Foundry Association (BDG).

Contact: Tillman van de Sand / Phone: +49 211 6871 301 / Mail: tillman.vandesand@bdguss.de

Ceramics industry

The fine ceramics industry was badly hit by the pandemic but was able to recover on the whole in 2021. The industry got off to a good start in 2022. Dinnerware and manufactories posted a growth in sales in 2021 but were unable to compensate for the setback in 2020. Project business posted a strong performance at the start of 2022 with rising private consumption additionally boosting the positive trend in incoming orders and sales, which increased by 37 percent in the first quarter 2022 year on year.

Technical ceramics also increased total revenue by around 20 percent in the first quarter 2022 compared to the first quarter 2021, bringing it back up to its pre-pandemic level. The situation among automotive component suppliers could have a negative impact on sales in some areas.

Sanitary ceramics remained largely unaffected by the pandemic with a good level of orders in 2020 and in 2021.

The tile industry managed to continue its upward trajectory of 2020 into 2021, with a high level of growth which continued into the first quarter of 2022 at more or less the same level.

All in all, the ceramics industry recorded rising incoming orders in the first quarter 2022, continuing its recovery from the crisis year of 2020.

The current volatile situation caused by the attack of Putin on Ukraine, sanctions and the current logistics problems in Chinese ports and elsewhere may well put an end to the current upwind in the industry. The upward trend among private consumers could well flatten out in the autumn months and possible new developments in the pandemic could deflate project business for dinnerware in particular. Growth is thus expected to slow down in the upcoming months.