Currently a tonne of loose cans is valued at £850 and a tonne of baled cans is £800. This came into effect on 25 January.
Before January the price of loose and flattened cans stood at £550 per tonne and baled cans were worth £600 per tonne. But on 4 January Novelis rose prices by £50 and then the following week, an additional £100 pushed prices up to £700 a tonne for loose and flattened cans and £750 a tonne for baled cans.
In response, Novelis communications manager Kate Ravenscroft told MRW: The price rise is as far as were concerned, just reflecting a change in markets and were reflecting this to keep prices as competitive as possible.
You could say it was unusual for it to go up three times in one month but it is part of a planned strategy that has been discussed and is not out of the ordinary for us. Its our way of staying committed to the UK market and ensuring we can keep up with the UK aluminium can supply. Were instigating a lean manufacturing strategy at the plant by working efficiently to full capacity, maintaining the aluminium can supply and staying competitive.
Packaging organisation Alupro executive director Rick Hindley said the recent price rises are positive, as there is currently strong consumer demand for cans which is in turn impacting on aluminium cans. He explained: Drinks can sales have held up well and have actually grown in the UK over the past year despite the recession. This may be because they are cheaper than drinks in plastic bottles. Supermarkets have also been pricing drinks cans at very competitive prices and have played an important part in increasing consumption.
Looking at last years packaging recovery note figures, they show that more cans are also being recycled, still outstripping the growth in sales.