Aluminium cans lead the price hike for materials

After 12 months of rising energy and materials costs, packaging manufacturers are planning double-digit price increases, with aluminium food and beverage cans leading the field.

Impress Group says that, thanks largely to demand from emerging markets such as India and China, aluminium prices have settled at a level 34% higher than 2005. As a result, it is ratcheting up prices for food and seafood cans by "at least 12%" in January.

Crown Europe is also passing on some of its costs. A spokesman says: "There will have to be double-digit price increases in our beverage business. We will have to recover margins which have been significantly affected by the huge increases in costs for aluminium, energy, and so on." Steel can prices will also rise, but not by the same amount.

Rexam will not discuss figures for its aluminium cans, but says: "It is our company strategy to recover the financial impact of increasing raw materials costs through price increases."

Like the food manufacturers they supply, converters of metal and other types of packaging are hit by inflationary pressures at different points in the chain. On top of materials prices and energy consumption during production, oil prices also impact on the cost of inks, lacquers and transport.

Paper and board manufacturers have been hit hard by both energy and pulp price increases. Speciality paper manufacturer Ahlstrom has announced single figure price increases from the New Year.