European aluminum foil market continues recovery

Deliveries of aluminum foil products continued to move ahead in the second quarter of 2013, confirming that the recovery in demand seen in 2012 is continuing according to the European Aluminium Foil Association (EAFA).

Overall production for the year to date reached 419,800 tonnes, a rise of 2.5 percent compared with the first half of 2012. Exports too maintained momentum, increasing by 3.2 percent in the second quarter of 2013, helping first half sales outside the European market achieve an increase of 6.6 percent.

Thinner gauges, used largely for flexible packaging and household foils, again led the market in the second quarter with a rise of 2.3 percent. Thicker gauges, used typically for semi-rigid containers and technical applications, dropped back by 1.8 percent, indicating recovery is more uneven for these products. Total deliveries, at 210,400 tonnes, resulted in a rise of 1.3 percent compared with the second quarter of 2012.

An encouraging sign for thicker gauges is that the volume of deliveries in the first six months of 2013 remained positive, and showed evidence that this sector of the market is stabilizing after a lengthy period of declining demand.

The EAFA region covers Armenia, Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Luxembourg, the Netherlands, Norway, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey and the UK.

EAFA said the improvement in exports was recorded despite some slowdown in demand from Asian markets as their rates of economic growth decline. Exports will be a major factor in the alufoil market’s recovery, according to EAFA.

EAFA vice-president, and Roller Group chairman, Manfred Mertens, said: ‘While the outlook is still somewhat uncertain there are clear signs that the trend is upward; although there may still be some negative quarters in some areas, the downs seem to be smaller and the ups larger.

‘Our members are now very experienced at dealing with this situation and have adapted to the market climate positively and imaginatively. Some factors, such as the financial and investment conditions, likewise credit lines, are outside our control and we have very limited influence on these areas.’

Read more on the flexible packaging market here