European aluminium foil producers experienced a weak start to 2026, with total deliveries declining in the first quarter despite indications of gradual market stabilisation as the period progressed.
According to the European Aluminium Foil Association (EAFA), total deliveries by its members reached approximately 225,000 tonnes during the first quarter, representing a 6.6 per cent decline compared with the same period last year. Shipment volumes also remained below average levels recorded before 2020.
Within Europe, aluminium foil deliveries fell by 4.3 per cent year-on-year during the quarter. While demand remained subdued at the beginning of the year, March recorded an improvement over the previous two months, supported primarily by the flexible packaging sector. Stable or growing demand for applications such as dairy packaging partly offset weaker demand for chocolate-related products affected by higher raw material costs.
Demand for household aluminium foil also improved in March after a slower start to the year. Meanwhile, foil used in technical applications recorded a modest recovery, reflecting cautious optimism in customer industries such as the European automotive sector, where electromobility incentives are expected to support demand.
Export performance remained under pressure, with shipments outside Europe declining by 24.2 per cent in the first quarter. EAFA attributed the downturn to stronger competition from Asian suppliers, US import tariffs and growing geopolitical uncertainty linked to tensions involving Iran.
Performance varied across product categories. Deliveries of thinner-gauge aluminium foil, mainly used in packaging and household applications, declined by 5.9 per cent within Europe, while thicker-gauge products used in container and technical applications recorded a comparatively smaller decline of 1.6 per cent.
Despite the weak start, Guido Aufdemkamp, Executive Director of EAFA, said the industry expects conditions to improve during the second and third quarters. He added that, despite geopolitical challenges and changing cost structures, European foil producers continue to reliably supply customers and expect overall aluminium foil deliveries for 2026 to remain broadly stable.
Note: This article is published in accordance with an article exchange agreement between Mysteel and AL Circle.
