According to data released by the European Aluminum Foil Association, continued growth in demand for aluminum foil in Europe in 1Q2022 offset a continued decline in export volumes. Overall, production in 1Q was 244,700 tons, just 0.2% below the same period last year. According to recently released data from the European Aluminium Foil Association (EAFA), weak demand from several consumer segments outside of Europe led to a 27% decline in exports, while demand from mainland Europe, however, increased by 5%.
European foil producers are working on a strong recovery in European demand, particularly for flexible packaging thin foils and other foils used in kitchen cooking and packaging, with demand up nearly 9% in 1Q. This is well above the overall growth trend of 6% in 4Q 2021 and 3% in 2021. This is due to increased packaging requirements as a result of retail inventory renewal. Deliveries outside Europe, on the other hand, declined by about 25%.
In semi-rigid foil containers, technical or otherwise, demand for thick foil was weak, with declines of 1.5% in Europe and 30% in the rest of the world. Following a marked increase in production in 2021, single-zero aluminum foil production is on an overall downward trend due to weakening demand and inventory adjustments in some technical areas.
Taking into account the decline in exports, total demand for thin aluminum foil grew by 2.4% in the first three months of 2022, while total demand for thick foil fell by 4.6%.
According to Guido Aufdemkamp, director general of the European Aluminium Foil Association, these figures indicate a strong recovery in Europe for the time being, but a particularly uncertain future development. “Fortunately, the European market has shown better resilience and we have reason to be optimistic that this will keep our foil production at a high level throughout the year. However, external disruptions and the stability and security of the global logistics chain, a further sudden rise in energy costs and the expected high inflation force manufacturers to remain on high alert.”
Mr. Guido said, “In Europe, new foil production capacity is gradually being started up and existing foil production lines will be modernized. This demonstrates the industry’s particular commitment to meeting the growing demand for aluminum foil in Europe, which is the result of strong demand in the European market for packaging and technical end markets, such as aluminum foil for power batteries.”
Post time: Jun-14-2022