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18 DECEMBER 2018 AL CIRCLE

India’s aluminium foil imports to see a rise in 2018, both in terms of volume and cost

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The flexibility of the aluminium to form any shape has made it the most versatile packaging material in the world. A key benefit of using aluminium in the packaging industry is that the aluminium packaging materials can be 100% recycled and reused an infinite number of times. More than 60% of the aluminium used in the packaging industry is processed to foil or thin strips.

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According to a report, the aluminium foil packaging market across the globe was valued at USD 18.912 billion in 2017 and is expected to reach a value of USD 23.166 billion by 2023, registering a CAGR of about 3.27% during 2018-2023 (the forecast period).

India, one of the fastest growing economies in the world, is also seeing a rapid rise in the use of aluminium foil, owing to strong economic growth and increasing middle class with growing disposable income.

As per the global export-import data, India is estimated to import 101,987 tonnes of aluminium foil in 2018, in contrast to 69,871 tonnes in 2017. This means this year is expected to see a growth of 46 per cent in India’s aluminium foil import, but would still remain low by around 40 per cent from 142,282 tonnes in 2016.

As a result of the import growth by India in terms of amount in 2018, the cost is also estimated to grow against the estimated price of 2017. Last year, the cost was at US$ 218 million, which is likely to growth this year by 67 per cent to US$ 363 million. However, the cost was way more in 2016 at US$ 401 million, 84 per cent higher than in 2017 and 11 per cent higher than in 2018.

The trend shows increasing consumption of aluminium foil in India while indicating the shift towards import. Though export is rising over the last two years, it is apparent that India still imports dependent for its aluminium foil consumption.

China is one of the top suppliers of aluminium foil to India. The Chinese export is not only cheaper; they are also of good quality and can be easily customised to the client’s requirement.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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