Alufoil market grows across Europe and beyond

First quarter 2013 production figures for aluminum foil showed growth across all gauges for the first time since mid-2011, according to figures published by the European Aluminium Foil Association (EAFA).

Overall Q1 production grew by 3.7 percent to 209,400 tonnes, up for 201,900 tonnes in Q1 2012. Exports from European manufacturers maintained the momentum seen in the later part of 2012 with a first quarter growth of 10.3 percent.

Thinner gauges, used largely for flexible packaging and household foils, also continued steady recovery during 2012 with a 2.4 percent increase in the first three months of 2013.

Thicker gauges, used typically for semi-rigid containers and technical applications, advanced by 2.5 percent, showing growth in this sector for the first time in 18 months.

Aluminum foil uses range from flexible packaging and container applications, to automotive and heat exchange components, insulation material and industrial applications.

Optimism is evident in the food and beverage markets, which are proving very resilient during continued economic uncertainty and slower than expected recoveries in most European economies, EAFA said. Another bright spot is the strong export order books for aluminum foil which indicate the strength of the markets in the Asia-Pacific region, India and the Americas.

EAFA executive director Stefan Glimm said: ‘These are pleasing results, particularly the recovery of volumes for thicker gauges. But demand remains weak in the automotive and building sectors and, until we see an upturn in these industries, predicting future order patterns remains difficult.

‘The aluminum foil sector is highly innovative, as the recent winners of the Alufoil Trophy 2013 demonstrated. This, together with a flexible and dynamic approach to demand changes, means that the European foil rollers remain strong and well placed to meet future challenges.’

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