The demand for thin aluminum foil products increased in H1 2020 due to the COVID-19 pandemic according to The European Aluminum Foil Association (EAFA). However, the production and sales across all foil gauges declined during the period.
Bruno Rea, president of the EAFA, said that the agency expects packaging grades of aluminum foil to return to pre-pandemic levels in Q3 2020 and is optimistic about the automotive and construction industry improving as well, leading to better demand for thicker gauge foil. He added that production in the EU remains vastly unaffected.
The agency noted that aluminum foil production declined by 2pc in H1 2020 to 476,000mt, compared with the first half of 2019. Total deliveries in Q2 2020 also fell short by 4.5pc from the same quarter last year, to 234,000mt, the EAFA said in a recent media release.
The pandemic has caused exports from the EU to sink due to shutdowns and restricted movement of cargo. It also disrupted demand for thicker gauges used in the automotive and construction sector, both of which were brought to a standstill during the initial outbreak of the virus.
An analysis reflects that sales of thinner gauges within the EU, used in food packaging, grew by 0.3pc, pulling total EU sales up by 0.5pc in the first six months of this year, the EAFA noted without disclosing actual volumes. However, sunken exports caused total sales to decline by 0.6pc.