Demand for aluminium foil in the European market rose sharply at the start of the year. This was noticeable for both thick and thin aluminium foil. Production climbed by 1.5% year-on-year to 226,900 tonnes in the first quarter of 2017, according to the European Aluminium Foil Association (EAFA).
According to EAFA, exports continued to be characterised by high volatility: After the strong final quarter of 2016, exports in the first three months of this year were down on the same period last year.
Deliveries of thick film, which is typically used for semi-rigid containers and technical applications, rose by 0.7%. Thin film, which is mainly used for flexible packaging and household film, even increased by 1.5%. This confirms the ongoing economic recovery in EAFA's domestic market, where deliveries rose by 3.6% in the first three months of 2017.
The strong competition from overseas foil rollers impacted aluminium foil exports from Europe, which fell by 14% compared to the first quarter of 2016. However, according to EAFA, some of the factors that have a negative impact on exports - such as currency factors - are now weakening. This opens up greater market opportunities for European manufacturers.
The outlook for the rest of the year is positive, according to EAFA's Executive Director Guido Aufdemkamp.
[infotext icon]The European Aluminium Foil Association is the international organisation of manufacturers of rolled aluminium foil products and household foil as well as semi-rigid aluminium foil containers, aluminium closures and flexible packaging of all kinds. Its more than 100 member companies are based in Western, Central and Eastern Europe[/infotext].„A number of factors, such as the strong domestic demand for flexible packaging and technical applications, point to fundamental strength in key markets for aluminium foil. This reinforces our confidence in the upward trend. The export situation, which is difficult to assess, is also showing signs of recovery,“ he said
