Caucasus (bbabo.net), - Armenian foil, the export of which to the United States has almost ceased, can find new markets. This is stated in the analysis of the Ministry of Economy of the Republic, reported today, January 16, by Sputnik Armenia.
In 2022, exports of aluminum foil from Armenia in value terms amounted to about $132 million, imports - $99 million. Exports of these products are increasing by approximately 7% per year, which is in line with global trends (since 2015, the global market for aluminum products has been growing by an average of 8.5% per year).
One of the key markets for Armenian foil has long been the United States, but with the introduction by the West of unprecedented anti-Russian sanctions, as well as anti-dumping duties on foil from Armenia, exports to the United States almost ceased. In 2018-2021 it averaged $25 million per year, and in 2022 it was only $1 million.
The main market for the Rusal-Armenal aluminum foil production plant remained the European Union: foil in 2022 (the results for 2023 have not yet been summed up) was exported to Germany for $59 million, $19 million to Poland, at $12 million - to Italy and the Netherlands.
Referring to a number of studies, the Armenian economic department estimates that the global market for aluminum products will continue to grow steadily, including in the foil line. At the same time, the sales market is growing in Armenia, but Rusal-Armenal does not yet operate for the local market.
Meanwhile, the production of cigarettes in the republic has grown to more than $350 million per year, confectionery products - to $96 million, medicines - to almost $20 million. With such production volumes, the demand for packaging foil in these industries is $10.4 million per year, but now these volumes are imported from abroad, notes the Ministry of Economy.
To organize their production, Rusal-Armenal needs to expand its production range (the plant does not currently produce foil across the full range of thicknesses and finishes). According to the Ministry of Economy, about $4.5 million is required to be invested in the purchase and installation of new rolling equipment, but the investment will pay for itself in the sixth year (considering that the expanded range can be sold not only domestically, but also for export).
As bbabo.net reported, the United States in September 2021 imposed a high tariff on foil imports from Armenia, as well as four other countries, including Russia. The corresponding notice is posted on the website of the US International Trade Administration. A rate of 29.11% will be applied to Armenian foil.
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