European aluminium foil sector concludes 2021 with a 4% rise in deliveries due to domestic demand recovery

European aluminium foil rollers finished 2021 on a record high, delivering 3.9 per cent higher than in the previous year. As per the data released by the European Aluminium Foil Association (EAFA), total shipments amounted to 967,000 tonnes in 2021, an increase of 36,000 tonnes or 3.87 per cent from 931,000 tonnes a year ago, led by the recovery in domestic demand, which added 7.5 per cent across the whole year and 12.8 per cent in Q4 alone.

Data shows deliveries of thinner gauges in Q4 2021, used for flexible packaging and household foils, continued to grow by 3 per cent year-on-year and 6 per cent quarter-on-quarter. Deliveries of thicker gauges, used for semi-rigid containers, technical or other applications, also concluded 2021 at a growing trend, recording a 7 per cent rise quarter-on-quarter and 6 per cent growth year-on-year.

However, overseas supplies decreased by 15 per cent in the year as adverse effects of the pandemic on production and supply chains are yet to fully unwind, although partly offset by European deliveries.

In 2022, disruption of production and supply chains is likely to continue due to the Russia-Ukraine conflict, in addition to price surge because of increased energy costs, raw materials, and commodities this year.

While expressing satisfaction about the development in European markets, Bruno Rea, Chair of the EAFA Roller Group, said: “This is a strong set of figures and shows the resilience in domestic demand. 2021 had many challenges as the pandemic continued to cause disruption across many aspects of production and supply. Not the least of these is the dramatic increase in energy costs which has very direct impacts on all foil rolling operations and will continue to do so for some time. Combined with high and very volatile raw material prices credit insurance lines can become insufficient in particular for our small- and medium-sized customers.”

“However, demand for aluminium foil in Europe remains strong, with volumes more than making up for the downturn in exports, which, while not welcome, was at least anticipated,” he added. “We will have to wait and see how the war in Ukraine and the continuing, if more muted, pandemic situation affects demand and supply patterns for 2022. But the industry is generally positive about market prospects going forward and looks to maintain the momentum seen in most of 2021,” Bruno Rea added.