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19 AUGUST 2019 AL CIRCLE

India’s aluminium foil import to decline 40% in 2019 after a sweeping growth last year

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to a report, the global aluminium foils market is expected to grow at a CAGR of 5.5 percent until 2020 to reach 6.4 MMT during the forecasted period, primarily driven by the increasing demand for beverage cans, the major end-user of aluminium foil. The demand for aluminium foils is going to increase in regions such as Brazil, Venezuela, Argentina, and Mexico of which nearly 35 - 40 per cent of the market share will be occupied by the packaging industry.

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India has also emerged as an important hub of aluminium foil consumption, owing to the change in life style, which includes changed food habits that led to an increased demand for foil packaging. Growing demand for ready to eat confectionaries and pharmaceutical products is another major growth driver for aluminium foils industry in India.

As shown in the data below, India’s aluminium foil import in 2018 grew significantly from 69,871 tonnes in 2017 to 158,919 tonnes, up 127 per cent. In 2016, the import was at 95,754 tonnes, which represents that the country’s import in 2017 was 27 per cent lower than the previous year. In 2019 again, India’s aluminium foil import is estimated to stand down from 2018, totalling 94,713 tonnes, down 40 per cent over the year.

India's aluminium foil import

India’s aluminium foil import cost is also projected to shrink in 2019 from US$551 million in 2018 to US$372 million in 2019, down 32 per cent, as a consequence to the drop in import volume. In 2017, the import cost was at US$218 million, which indicates that the cost in 2018 had grown significantly by about 152 per cent. The import cost in 2017, however, valued lesser by 22 per cent than US$281 million in 2016.

India's aluminium foil import cost

Red Mud Report

China is expected to remain the major aluminium foil supplier to India, providing 39,142 tonnes at US$154 million. Indonesia and Thailand are estimated to be the next two important suppliers, with expected export volumes of 14,636 tonnes at US$50 million and 12,320 tonnes at US$40 million.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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