EAFA sees optimism in aluminum foil market

EAFA said deliveries of thinner gauge aluminum foil decreased 1.3 percent in 2014 when compared to 2013, with more competition from non-European suppliers and continuing down gauging are mainly responsible for this outcome.

Conversely, demand for thicker gauges, used typically for semi-rigid containers and technical applications, saw the year-on-year total improve marginally by 1.8 percent, thanks to a slow recovery of technical markets.

Total production of aluminum foil in Europe reached 852,685 tonnes, just 0.3 percent below the previous year’s total of 855,510 tonnes.

In the EAFA region, which covers the covers the EU 28 plus Armenia, Bosnia-Herzegovina, Macedonia, Montenegro, Norway, Russia, Serbia, Switzerland and Turkey, deliveries retreated by 2.2 percent, recording sales of 754,018 tonnes compared with 771,385 tonnes in 2013.

Exports put in a strong performance, ending 2014 with a rise of 17.2 percent, from 84,126 tonnes in 2013 to 98,668 tonnes in 2014, helped by currency factors.

As anticipated, end of year de-stocking saw deliveries in the fourth quarter dip by 2.9 percent compared with 2013, to reach 200,420 tonnes (206,449t).

EAFA vice president and Roller Group chairman Manfred Mertens (pictured) said: ‘After a very strong start to the year we experienced a gradual slowdown for the remaining nine months.

‘But the falls for the following three quarters were small or seasonal and deliveries ended only very marginally down for the full 12 month period. In particular the export performance was most encouraging, probably benefiting from the weaker Euro. The more mature European markets are still not seeing strong growth and are affected by increasing competition from outside the area.

‘Optimism remains, however, amongst EAFA foil rollers, that growth in 2015 will accelerate across most markets. The outlook still remains uncertain and it is no easier to predict the next months than it was the last.’