Demand for aluminium foil across Europe recovers in Q2 2024
After rather disappointing Q1 figures for aluminium foil production in Europe, Q2 2024 saw a welcome return to growth after a long period of decline stretching back into early 2023. Total shipments saw a strong recovery, up 6.6% on the same period in 2023, at 227,000 tonnes. While domestic deliveries into Europe recorded strong gains, exports continue to struggle, according to figures now released by the European Aluminium Foil Association (EAFA).
Thinner gauges, used mainly for flexible packaging and household foils, saw the strongest gains, recording more than 8 percent increase on the corresponding period in 2023. In Europe the increase in demand reached almost 10 percent. Thicker gauges, used for semi-rigid containers, technical or other applications saw a more modest rise of 4 percent overall, but again the figure for European deliveries was almost 7 percent over Q2 2023. Exports continued to decline, a pattern which has been evident since mid-2023, following a spike in overseas demand in the first half of that year. Deliveries outside Europe fell almost 9 percent with thinner gauges performing better than thicker gauges but both down. These numbers reflect continuing supply chain problems and stiff competition from Chinese and other local suppliers.
Overall, the total first half year deliveries of 446,000t show slightly positive trend of 0.2% confirming the recovery in the second quarter. Domestic sales were even 3 percent up while exports remain weak.
Bruno Rea, Chair of EAFA’s Roller Group, reflecting on the figures, said, “Last quarter there were signs that the depressed market conditions in Europe were bottoming out. This seems to be confirmed by these figures, which show a healthy increase in demand from domestic customers. Of course we are not yet at the levels seen in 2022, but those demand patterns were exceptional. It does seem to indicate destocking is now completely ended.”
“Exports remain a concern, but as production has come back on stream fully in overseas markets the competitive situation was bound to have an impact. While they make up a smaller volume of production, we hope some stability will return in 2024. Domestically we are more optimistic as underlying demand in the first half of 2024 has certainly improved on the last six month of 2023 and we expect that will continue for the rest of this year.”
