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According to a report published by the European Aluminium Foil Association, the first quarter of 2022 witnessed robust domestic demand for European aluminium foil rolls, countervailing a continuing decline in exports. Demand in the larger domestic market segment grew by 5 per cent in the quarter, with a total production volume 0.2 per cent higher Y-o-Y to 244,700 tonnes. Exports dropped sharply by 27 per cent as pressures on several non-domestic fronts continued to weigh.

European demand for thin gauges, used mainly for flexible packaging and other kitchen applications, recovered considerably with a hike of 9 per cent in Q1 2022. That was higher than the 6 per cent of growth seen in the previous quarter and the overall rising trend of 3 per cent last year. The packaging industry contributed the most to the demand growth for thin gauges due to renewed stocking trends in retail. Outside Europe, deliveries fell by about 25 per cent. On the other hand, demand for thicker gauges, used for semi-rigid containers, technical or other applications, declined by 1.5 per cent in Europe and 30 per cent elsewhere.

According to Guido Aufdemkamp, Executive Director of EAFA, the figures above show a recovery in European economies but temporary. He said, “Fortunately, the resilience of the European market is very encouraging and gives us the reason for optimism that this will keep our foil production at a high level over the entire year. But external disruptions and availability in the global logistic chain or further sudden rises in energy costs as well as expected high inflation force the manufacturers to continue being on high alert.”

 He added, “New foil rolling capacities went online recently and existing ones are going to be modernised. This shows the industry is very committed to meeting the growing demand for aluminium foil in Europe caused by strong packaging and technical end-markets like battery foil for e-mobility.”

Edited By : Debanjali Sengupta