Droopy European aluminium foil deliveries in H1 2023 mirror narrow demand in the packaging sector

The European Aluminium Foil Association (EAFA) showed that aluminium foil deliveries experienced a demand drop of 9.4 per cent in the first six months of 2023, reaching 444,000 tonnes. The Association further reported that deliveries in the second quarter dropped by 15 per cent Y-o-Y amid weak demand resulting in destocking.
Production of aluminium foil also dwindled Y-o-Y by 14.74 per cent from 249,400 tonnes to 212,300 tonnes, according to EAFA.
Thinner gauges demand also fell 14 per cent Y-o-Y in the European market and almost 30 per cent outside Europe in the second quarter of 2023. Year-to-date, the demand was 10 per cent lower in Europe and 17 per cent elsewhere. Thinner gauges are mainly used for flexible packaging and housefold foil. High inflation and rising interest rates caused weak demand in the packaging and related sectors, resulting in weighing on foil demand.
Deliveries of thicker gauges dropped by 15 per cent during April-June 2023, while in six months’ time fell by 11 per cent. But exports outside Europe increased by 40 per cent year-on-year due to a spike in overseas demand in both Q1 and Q2. But as more Asian production will resume, export deliveries will normalise.
Bruno Rea, Chair of EAFA Roller Group said, “Following the pattern established in Q1 these numbers are in line with expectations and reflect current situations affecting the global economy which are outside our control. In addition, the figures for 2022 were exceptional as the world recovered from Covid and both consumption and demand for all kinds of commodities using aluminium foil skyrocketed.”
“Recoveries are never straightforward and while tensions around the globe remain high and inflation here in Europe and other important markets remains above normal we maintain a cautious outlook for the rest of 2023. However, there are signs inflation is coming down and this accompanied by governmental programs to alleviate pressure on energy prices should have a positive impact on consumption by early 2024, or even slightly before then. Aluminium foil manufacturers remain resilient to meet these challenges, as they have done in the past.”

Source: https://www.alcircle.com/news/droopy-european-aluminium-foil-deliveries-in-h1-2023-mirror-narrow-demand-in-the-packaging-sector-99046