Market trends: Europe--Foil demand tumbles as Chinese supplies dry up

摘要

Underlying demand conditions in the foil market have gone from bad to worse over the past few months with products particularly exposed to the industrial and construction markets taking a particularly severe hit from the current recessionary conditions. In a turnaround from the situation through much of 2008, it is demand for thicker gauge foils that have been especially affected by the weak economic conditions, while the market for thinner material has, to some extent, held up relatively well not least due to lower Chinese imports as a result of anti-dumping duties imposed earlier this year. Market participants report that while the collapse in demand has been severe, it has broadly stabilised at current low levels and certainly on a m-o-m basis the pace of decline has eased a little in the past month or so.