European alufoil recovery continues despite dip in demand for thinner gauges

The steady recovery of demand for aluminum foil products in Europe has continued to see the gap between 2014 and 2015 production narrow to just a 0.3 percent drop by the end of the third quarter, according to the European Aluminium Foil Association (EAFA).

The steady recovery of demand for aluminum foil products in Europe has continued to see the gap between 2014 and 2015 production narrow to just a 0.3 percent drop by the end of the third quarter

Comparatively, the decline at the end of the first quarter was 2.5 percent. Deliveries for the first nine months of the year reached 652,900 tonnes, against 654,900 tonnes in 2014.

Thicker foils typically used for semi-rigid containers and technical applications, continue to lead this recovery, with shipments 4.5 percent higher than the same stage last year. Demand for thinner gauges, used mainly for flexible packaging and household foils, fell by 2.7 percent, reflecting the instability still existing across most major markets. Exports declined by 10 percent as strong competition in overseas markets hit domestic producers in the EAFA zone, the association said.

‘Volatility remains across most markets,’ said Stefan Glimm, EAFA’s chief executive director. ‘But the European area is finally seeing more consistent growth than before. We expect that to continue into 2016 and are confident to reach the same full year totals achieved in 2014.’

EAFA covers the EU 28 countries, plus Armenia, Bosnia-Herzegovina, Macedonia, Montenegro, Norway, Russia, Serbia, Switzerland and Turkey.

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