The third reduction in aluminium can prices in two weeks has been announced by Novelis, which has deducted £100 from all grades.
Baled or densified palletised and strapped cans have dropped to £550 per tonne from £650 p/t, and both loose and flattened cans and loose and whole cans fell to £500 p/t from £600p/t.
This reduction follows two earlier drops of a £100 each time from average prices between £800 and £750 p/t the beginning of October.
Novelis commercial manager Keith Guest said: Current prices are reflecting the difficult economic markets and metal values on the London Metal Exchange. Looking at the prices for other scrap metal, Novelis prices are very competitive.
This price fall is not totally unprecedented, as prices dropped lower in 1995 and were at similar levels to current prices in 1999.
Aluminium packaging producers and reprocessors representative Alupro executive director Rick Hindley added: Aluminium is a valuable metal, so although the prices are sliding, they wont drop to the level that other metals have.
Novelis has the added benefit that its cans go back into making drinks cans and the demand for them is positive. This is not the same as for non-closed loop packaging.