Alufoil ‘outlook uncertain’ despite 2.5% production rise

By Jenny EAGLE

- Last updated on GMT

Related tags Economics

Overall alufoil production has risen 2.5% compared with the first half of 2012
Overall alufoil production has risen 2.5% compared with the first half of 2012
Cautious optimism prevails among members of the EAFA (European Aluminium Foil Association) after it released its second quarter alufoil results for 2013.

Overall production for the year to date reached 419,800t, a rise of 2.5% compared with the first half of 2012 (409,500).

Exports also maintained momentum, increasing by 3.2% in the second quarter of 2013, helping first half sales outside the European market to an impressive 6.6% rise.

Household foils up

Q2 results showed thinner gauges, used for flexible packaging and household foils, led the way with a rise of 2.3%.

Thicker gauges, used typically for semi-rigid containers and technical applications, dropped by 1.8%, indicating recovery is more uneven for these products.

Total deliveries, at 210,400t achieved a rise of 1.3% compared with Q2 2012.

An encouraging sign for thicker gauges is deliveries in the first six months of 2013 remained positive at +0.3%, evidence that this sector is stabilising after a period of decline.

Slow demand from Asia

While the outlook is still somewhat uncertain there are clear signs that the trend is upward, although there may still be some negative quarters in some areas, the ‘downs’ seem to be smaller and the ‘ups’ larger​,” said Manfred Mertens, VP and Roller Group Chairman, EAFA.

Our members are now very experienced at dealing with this situation and have adapted to the market climate positively and imaginatively.

Some factors, such as the financial and investment conditions as well as likewise credit lines are outside our control and we have very limited influence on these areas​."

Exports continue to perform well, despite some slowdown in demand from Asian markets as their rates of economic growth decline.

In the second quarter of 2013 export sales improved by 3.2% compared with the same quarter of 2012. This continues to be a major factor in the recovery, according to EAFA.

Related topics Processing & packaging

Related news