{"id":84881,"date":"2023-08-29T13:40:54","date_gmt":"2023-08-29T11:40:54","guid":{"rendered":"https:\/\/packaging-journal.de\/?p=84881"},"modified":"2023-08-29T11:46:51","modified_gmt":"2023-08-29T09:46:51","slug":"weakened-demand-for-aluminium-foil","status":"publish","type":"post","link":"https:\/\/packaging-journal.de\/en\/geschwaechte-nachfrage-bei-alufolien\/","title":{"rendered":"Weakened demand for aluminium foil"},"content":{"rendered":"
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The European Aluminium Foil Association takes a look at developments in aluminium foil deliveries in the first half of 2023, according to which weak demand and the reduction in inventories continue to be a burden on the industry.\u00a0<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In the first six months of this year Deliveries of aluminium foil fell by 9.4 per cent to 444,000 tonnes<\/strong>, with both domestic deliveries and exports declining. The second quarter of 2023 was 15 per cent weaker than the same quarter of the previous year, as the Weak demand and the resulting destocking still noticeable<\/strong> are. The double-digit decline is also due to the surge in demand in the second quarter of 2022, when delivery records were set thanks to exceptionally high post-Covid demand. Production in the second quarter of 2023 totalled 212,300 tonnes (2022: 249,400 tonnes), according to the latest figures from the European Aluminium Foil Association EAFA<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201eRecovery periods are never straightforward and as long as tensions around the globe remain high and inflation in Europe and other major markets remains above normal, we maintain our cautious forecast for the remainder of 2023. This, combined with government programmes to ease pressure on energy prices, should have a positive impact on consumption by early 2024 or even slightly earlier. As in the past, aluminium foil manufacturers are still in a position to overcome these challenges.\u201c<\/p>

Bruno Rea<\/strong><\/p><\/blockquote>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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For thin film, which is mainly used for flexible packaging and household film, In the second quarter, demand fell by 14 per cent on the domestic markets and by almost 30 per cent outside Europe<\/strong>. In the first half of the year, demand in Europe fell by 10 per cent and outside Europe by 17 per cent. The return to normal consumption habits as well as continued high inflation and rising interest rates have led to persistently weak demand in the packaging industry and related sectors. The Companies along the supply chain continue to reduce their inventories and remain cautious<\/strong>.<\/p>

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The trend for thick film, which is used for semi-rigid containers, technical or other applications, is similar in some cases. Deliveries fell by 15 per cent overall in the three months to the end of June, with the figures for the first half of the year showing a decline of 11 per cent for the domestic markets, but a 40 per cent increase in exports<\/strong> show. This is due to a sharp rise in demand from overseas in the first two quarters of this year, which pushed up deliveries of thick material. To the extent that the production in Asia picks up again, these export deliveries are likely to normalise<\/strong>. However, this segment of export products only accounts for a small proportion of total production, meaning that the impact on overall production figures is minimal.<\/p>

\u201eGiven the pattern of behaviour in the first quarter, these figures are in line with expectations. They reflect the current situation of the global economy, which is beyond our control. In addition, the figures for 2022 were exceptionally good as the world recovered from Covid and both consumption and demand for all types of goods for which aluminium foil is used skyrocketed.\u201c<\/p>

Bruno Rea<\/strong>, the chairman of the EAFA rolling group<\/p><\/blockquote>

Source:\u00a0<\/em>EAFA<\/a><\/p>