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05 JUNE 2023 AL CIRCLE

European aluminium foil deliveries during Q1 2023 dropped 3.3% Y-o-Y nearing the pre-covid level

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to the European Aluminium Foil Association (EAFA) survey, aluminium foil deliveries from European rollers dropped by 3.3 per cent year-on-year in the March quarter of 2023 after a prolonged period of increased deliveries due to demand surge. As per the data shared by EAFA, European foil deliveries were recorded at 231,700 tonnes during 1QCY2023, close to the pre-covid level of 239,500 tonnes in Q1 2020. 

European aluminium foil deliveries during Q1 2023 dropped 3.3% Y-o-Y nearing the pre-pandemic level

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 High inflation, combined with weakened demand for packaging, led to a fall in European foil deliveries. Also, less in-home consumption and home deliveries than during COVID, affecting applications such as converter foil and semi-rigid containers, contributed to the dip in foil deliveries.

After many quarters of strong demand, domestic foil deliveries fell 6 per cent, with the largest decline of 5.5 per cent in thinner gauges, used mainly for flexible packaging and other kitchen applications. Deliveries of thicker gauges, used for semi-rigid containers, technical or other applications, decreased by 7 per cent; however, offset by robust export performance, up nearly 70 per cent from the previous year.

 Guido Aufdemkamp, Executive Director of EAFA, commented: “It is disappointing that the first quarter of 2023 saw some decline in overall demand for aluminium foil, but it is not wholly unexpected, We replaced one major issue, the pandemic, with other issues, such as the conflict in Ukraine, high inflation and weakening consumer demand for many products using aluminium foil, such as confectionery, while new applications such as battery foil have not yet kicked off as formerly anticipated.”

Sustainability in the Global Aluminiuym Industry

 “However, these are a mixed bag of figures. They show the export situation improving. But increasing exports out of Europe do not fully compensate for the losses due to weaker domestic demand. Both 2021 and 2022 were exceptional in many ways and looking across the last three years the market for aluminium foil has proved very resilient. Looking ahead, inflation is a key factor in many of the markets we supply, so if it starts to come down as expected, later in 2023, then we can look forward to some recovery in demand. Currently we are in a situation of ‘wait and see’. If there are no clear signals aluminium foil demand will stay somewhat depressed, but this can change quickly,” he added.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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