European alufoil deliveries down in 2011 – Cautious outlook for 2012

Full year figures for European output of alufoil in 2011 showed a modest decline in overall production levels, reflecting the cautious outlook throughout the European economic markets. However exports from Europe remained steady according to figures released by the European Aluminium Foil Association (EAFA).

Total production fell back by 5.2% to 801,900 tonnes (2010: 846,300 tonnes), with thinner gauges declining by 7.9%. Thicker gauges fared much better registering only a 2.4% drop from 2010 levels. Exports held up better, down by just 0.7%.

EAFA’s Roller Group Chairman Manfred Mertens commented on the outlook: “The general economic uncertainty affects the whole supply chain. Most retailers and fillers are placing orders on a ‘just in time’ basis and in lower volumes. Forecasting future demand remains difficult. As the longer-term outlook for aluminium is positive, we are cautiously optimistic for the next few months.”

The alufoil sector has the advantage of serving to a large extent FMCG markets which are far less volatile than industrial output. Also, EAFA has joined the UN’s SAVE FOOD campaign, highlighting the value of packaging in reducing food waste.