European aluminium foil deliveries rise 3.4% in Q1 2020, thanks to strong demand during COVID-19 lockdown

The total aluminium foil shipments from Europe recorded a slight rise by 0.59 per cent in the first quarter of 2020 to 242,100 tonnes compared to 240,700 tonnes during the same period last year, found the European Aluminium Foil Association (EAFA). European deliveries rose by 3.4 per cent during the said period but were largely offset by a drop of 13.3 per cent in exports, showed the EAFA data.

Restocking after the long Christmas holiday, driven by the strong demand for domestic uses, pre-packed foods, and takeaway services caused by the COVID-19 lockdown, is believed to have been a major factor for the increase in deliveries. Disrupted supply chains due to earlier lockdowns in the European market, on the other hand, accounted for the decline in exports.

Production of thinner gauges, mainly used for flexible packaging and household foils, rose by 3.2 per cent in the first quarter of 2020, owing to have witnessed a steady demand throughout the previous year. But its deliveries outside Europe saw a pronounced decline of 20.9 per cent. Thicker gauges, used for semi-rigid containers, technical or other applications, on the other hand, showed resilience in all markets, with Europe adding 3.7 per cent and exports outside Europe returning to growth with a rise of 7.4 per cent.

So, the overall deliveries of thinner gauge products declined 1.5 per cent in Q1 2020, while the deliveries of thick gauges increased 4.2 per cent.

Guido Aufdemkamp, EAFA Executive Director commented, “The markets for aluminium foil products have seen the COVID-19 pandemic become a major influence on demand patterns in the later part of this quarter. With so many people under lockdown and having to cook at home, or purchase only takeaway foods, the use of foil has increased. Likewise consumers now prefer pre-packaged foods, and this has helped all packaging materials, not just foil, to improve sales.”

“But, of course, the downside is that global exports are almost at a standstill and we see disruption to supply chains in overseas markets remaining for some time. We anticipate European demand will stay very strong through Q2 and probably into Q3. But it is difficult to predict anything at present, so we will continue to watch events closely and act accordingly,” he added.