EAFA reports 1.2% drop in European aluminium foil deliveries in Q1 2019; exports remain strong

According to the latest figures from the European Aluminium Foil Association (EAFA) aluminium foil deliveries from European rollers dropped in the first quarter of 2019. The drop is attributed to the reduced stock levels in the domestic market by consumers and converters.

The total volume dropped 1.2% YoY to 239,400 tonnes from 242,300t tonnes in Q1 2018 leading to a 4% drop in home deliveries.  A number of countries registered strong performance in exports in limited product categories, achieving 16% growth year-over-year.

Shipments of thinner gauge foils used for flexible packaging and household foils declined 4.3%, while thicker gauges, used for semi-rigid containers and technical applications, rose by 4.5%. Thicker gauge continues the upward trend started at the end of 2018.

Analysing the figures Bruno Rea, EAFA President said, “There was good development of foil shipments during 2018 so this fall in domestic orders, we believe, is the result of excess stocks being reduced to reflect current demand levels, following the long Christmas and New Year holidays.” 

“Generally, foil demand in Europe is relatively stable. Supplies from China increased dramatically by almost 40%, severely impacting domestic production levels,” he added.

He said that exports continued to be an area of alternative sales for the European foil producers like in 2018. He said that cheaper imports from outside has impacted the European supply and demand balance and visibly hurt the European industry. He also said that the industry is concerned over the current trade disputes which are affecting world economic growth and the end-markets for aluminium foil.

“Relying on exports in a market that is distorted by duties will not support the European foil rollers in the mid- to long-term, putting the entire industry at risk.” concluded Mr Rea.