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The European aluminum foil market was stable but largely flat in 2013, with output edging up from 2012 levels, according to figures released by the European Aluminium Foil Association.

"The outlook for 2014 is viewed optimistically, with a general recovery in demand expected to gather pace both in Europe and overseas," EAFA said.

Final output figures for the year were 842,700 mt, 0.3% ahead of 2012's production of 840,600 mt, although fourth-quarter output of 199,800 mt was down by 3.3% from a year earlier.

"Deliveries of thinner gauges, used largely for flexible packaging and household foils, remained positive throughout 2013, although the strong growth figures seen in the first half of the year did not carry on into the second," EAFA said.

The decline in demand for thicker gauges, used typically for semi-rigid containers and technical applications, continued into the fourth quarter, largely caused by ongoing uncertainty in construction and technical markets and depressed demand from overseas, it added.

After a bright start to the year, exports tailed off, falling by 0.3% year-on-year as economic uncertainty in some markets delayed investment plans. Thinner gauges increased deliveries by 1.1% compared with 2012, while thicker gauges recorded a downturn of 1.1%, EAFA noted.

"After such a strong start to 2013 it was a little disappointing that the trend did not continue through the rest of the year. But the slower-than-expected economic recovery in southern Europe and some of our key export markets held back demand, particularly for thicker gauges," said Manfred Mertens, EAFA's vice president and roller group chairman.

"We see clear signs that the activity in 2014 is improving in all areas for both thin and thicker gauges. So we continue to be cautiously optimistic that markets are recovering all the time," Mertens said. "It should not be forgotten either that thinner gauge deliveries increased throughout 2013, despite the challenging market conditions."