Novelis has raised the price paid for aluminium cans by £70. This week, can prices increased from £800/tonne for loose and flattened cans to £870/tonne. Baled cans also went up by £70/tonne to £920/tonne.
This is the first price rise for aluminium cans since September 2010.
In a statement, Novelis said: “The price paid by Novelis for UBCs from the UK market has always been an accurate reflection of the real market situation. With this in mind we are aligning our own commercial activity with market conditions, which is our established strategy, and the price we pay for UK sourced baled/densified UBCs, meeting Novelis specifications and delivered into a Novelis Aggregation Centre, will increase to the rate of £920/tonne.
“This price rise is an appropriate and planned commercial response and is part of a longstanding Novelis strategy to pay competitive prices to suppliers for quality UBCs which feed the Novelis UK closed loop recycling process.”
Aluminium recycling association Alupro’s executive director Rick Hindley said the decision to raise prices is probably to keep them in line with the London Metal Exchange and scrap prices generally. He added: “It shows demand for drinks cans is strong. In the UK, demand grew by 6% last year.”