Aluminium foil shipments in Europe recovered during the second quarter of 2024, recording a 6.6 per cent rise year-on-year and a 4.2 per cent increase quarter-on-quarter, found the European Aluminium Foil Association (EAFA).
In the first quarter, the shipments suffered a loss of 6 per cent annually, coming in at 217,800 tonnes, which grew over a quarter to 227,000 tonnes to meet the demand growth of almost 10 per cent.
The increase in Q2 shipments was primarily backed by thinner gauges, which are mainly used for flexible packaging and household foils. The shipments of thinner gauges saw the most substantial gains, growing by more than 8 per cent from the corresponding period of 2023. The shipments of thicker gauges, used for semi-rigid containers, technical or other applications, saw a relatively modest rise of 4 per cent.
However, the exports of aluminium foils continued declining, following the pattern evident since mid-2023, attributed to sluggish demand across the globe. According to EAFA data, deliveries outside Europe fell almost 9 per cent, with thinner gauges performing better than thicker gauges but both down over the year.
These numbers reflect supply chain constraints and tough competition for European aluminium foil producers due to increased influx from China. In response to the rising imports of Chinese aluminium foils, the United Kingdom's Trade Remedies Authority (TRA) launched a transitioning review concerning aluminium foil imports from China. It followed a 2013 ruling during the UK's EU membership, where the European Union identified instances of dumping by Chinese producers and imposed anti-dumping measures. Post-Brexit, these measures were incorporated into UK law. The TRA's current review is aimed at evaluating the necessity of maintaining these measures to ensure fair competition for UK producers.
The increase in European aluminium foil shipments during the second quarter of 2024 balanced the Q1 drop, bringing the total first-half deliveries to 446,000 tonnes, slightly up by 0.2 per cent Y-o-Y. Domestic sales were even up by 3 per cent while exports remained weak.
Bruno Rea, Chair of EAFA's Roller Group, said, "Last quarter there were signs that the depressed market conditions in Europe were bottoming out. This seems to be confirmed by these figures, which show a healthy increase in demand from domestic customers. Of course, we are not yet at the levels seen in 2022, but those demand patterns were exceptional. It does seem to indicate destocking is now completely ended."
He added, "Exports remain a concern, but as production has come back on stream fully in overseas markets, the competitive situation is bound to have an impact. While they make up a smaller volume of production, we hope some stability will return in 2024. Domestically, we are more optimistic as underlying demand in the first half of 2024 has certainly improved on the last six months of 2023, and we expect that will continue for the rest of this year."
According to AL Circle's report "Aluminium Foil and its End Uses – Current Trends and Forecasts till 2028", the usage of world aluminium foil is expected to increase to 7.2 million tonnes, of which Europe is estimated to account for 15 per cent, compared to 16 per cent of the world's usage of 6.1 million tonnes in 2023. The report has delved into this detailed study, highlighting vital European markets like Germany, Italy, France, the United Kingdom, Spain, Russia, and Turkey.
