EAFA reports improved alufoil deliveries in Q1 2017 driven by strong domestic demand

According to the latest figures released by the European Aluminium Foil Association (EAFA), European markets started 2017 with strong demand for all grades of aluminium foil. Production increased 1.5% YoY to 226,900 tonnes in Q1 2017. Exports registered a downturn in Q1 in comparison to Q1 2016, after a strong end of 2016.

Deliveries of thicker foils as well as thinner gauges were up 0.7% and 1.5% respectively indicating a steady recovery in the economies of the EAFA region. Total YTD domestic shipments were up by 3.6% through March 2017. Thicker foils are used for semi-rigid containers and technical applications and thinner gauges are for flexible packaging and household foils.

EAFA’s Executive Director, Guido Aufdemkamp sounds positive on the prospects for the rest of 2017. “Certain factors, such as strong domestic demand from the flexible packaging sector and for technical applications, show an underlying strength in key markets for aluminium foil. This enables us to feel more confident about the upward trend we are seeing. Even exports, which remain harder to predict, are showing signs of recovery,” he said.

{googleAdsense}

Exports from Europe remain volatile due to strong competition from overseas foil rollers. Exports dropped by 14% compared to Q1 2016. But adverse factors like negative currency effects are now moderating, offering European manufacturers more trading potentials.