Strong domestic demand in Europe from the flexible packaging sector shows underlying strength in key markets for aluminum foil

The European Aluminium Foil Association (EAFA) has reported strong demand for all grades of aluminum foil in European markets during the first quarter of the year.

Aluiminum foil production increased to 226,900 tonnes in the first quarter of 2017, 1.5 percent higher than the same period last time

Production increased to 226,900 tonnes in the first quarter of 2017, 1.5 percent higher than the same period last year, according to the latest figures released by EAFA, although exports continued to be 'volatile', showing a downturn in the first quarter compared to the previous year after a strong finish to 2016.

EAFA said deliveries of thinner gauges, used mainly for flexible packaging and household foils – up 1.5 percent – and thicker foils, used typically for semi-rigid containers and technical applications – ahead by 0.7 percent year-on-year – show continued steady recovery in the economies of the EAFA region, where total domestic shipments were up by 3.6 percent in the three months to March 2017.

Strong competition from overseas foil rollers continues to affect aluminum foil exports from Europe, which were down 14 percent compared with the same quarter in 2016. But some of the influences which have had an adverse impact, such as currency factors, are now moderating, offering European manufacturers more opportunities.

EAFA executive director Guido Aufdemkamp commented: ‘Certain factors, such as strong domestic demand from the flexible packaging sector and for technical applications, show an underlying strength in key markets for aluminum foil. This enables us to feel more confident about the upward trend we are seeing. Even exports, which remain harder to predict, are showing signs of recovery.’

See more aluminum foil statistics from EAFA in L&L issue 1, 2017