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The European Aluminium Foil Association (EAFA) sees a continuation of the positive trend in the supply of aluminium foil in the third quarter. Deliveries of thin foils increased, while demand for thicker foils fell compared to the same period last year.
In the third quarter of 2022, the Aluminium foil deliveries of 237,800 tonnes only 0.3 per cent below the volumes in the same quarter of 2021. The industry delivered a solid performance on all markets. Deliveries were well above the volumes from 2020 (+1.8%), when the full impact of Covid-19 was felt, and were even 3.6% above the pre-pandemic level in 2019, according to the European Aluminium Foil Association. EAFA reported.
In the nine months to September, deliveries of aluminium foil rose by 0.4% compared to the same period of the previous year. The Q3 deliveries of thin film, which is mainly used for flexible packaging and household film, increased by 1.8 per cent compared to the comparable volumes for 2021 thus confirming the trend observed in the first half of the year. The 9-month comparison even shows an increase of 2.1 per cent. This is primarily due to the continued strong demand from packaging processors in Europe.
The demand for thick film, which is used for semi-rigid containers, technical and other applications, fell by 4.1 per cent in the third quarter and by 2.7 per cent over the nine-month period. The reasons for this are the further decline in catering/take-away deliveries, the reduction in inventories and ongoing disruptions in the technical markets.
Following weaker exports to regions outside Europe in the first half of the year Exports rose by 1.3 per cent in the third quarter. One reason for this is that local production problems, such as ongoing lockdowns in these markets, led to delivery problems. In the first nine months of this year, however, sales of European film rollers to non-European customers fell by 9.7 per cent.
„This is a strong performance under the current circumstances. We are cautiously optimistic that we will see a return to normal delivery volumes for the rest of the year, particularly in Europe. Demand in the packaging sector remains high. While technical markets such as automotive and construction remain disrupted and therefore uncertain, the trend for the year favours a more stable development. We have clearly left the demand levels we saw in 2019 and 2020 behind us. Some deliveries, especially of thick film, could decline somewhat compared to 2021, as companies replenished their stocks last year after a long period of depressed demand. The market for thin film, on the other hand, appears to be growing steadily and we expect this to continue in 2023. Energy costs, the disruption of material supplies and the war in Ukraine will continue to affect the markets, but the film rolling industry in Europe has proven to be adaptable and resilient enough to meet the needs of its customers.“
Guido Aufdemkamp, EAFA Managing Director
Source: EAFA
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