Speaking exclusively to Packaging News, Ball Europe Packaging Europe president Colin Gillis said: “The London Metal Exchange [LME] sets the price for aluminium. The parties who set the premiums for shipping and warehousing have raised the prices at a high level over the last two years.
“This is a significant and extraordinary cost increase for us and we are left with no choice but to renegotiate contracts and to pass these costs on when we negotiate new contracts.”
Current prices on the LME show prices for aluminium are $ 1,792.50 a tonne at the moment.
‘Consumers like cans’
Gillis added: “These prices have risen to historical highs and it is not reflective of the true cost. Europe is a challenging place right now. However, people are still drinking. Consumers like cans and we have seen a resurgence in places in Germany. ”
He said in general the situation in Europe had been “cool” for the first few months of the year. In general, there has been a 2-3% growth per year in Europe for. Gillis said: “It is steady growth which in turn prompts us to have more of a measured investment plan.”
Asia Pacific and South America
Elsewhere, Gillis said: “The last few years have been really kind to the can especially in our Asia Pacific and South American regions.
” There will be two events that will keep consumption growing. The world will be coming to Brazil’s door in the next few years with the World Cup and Olympics.
“North America is a mature market and the development of speciality cans is really taking off. Our Alumi-Tek 16oz bottle is doing very well and has been a great success story.
“People are looking for something different and our customers are driven by our consumer’s needs. Our impact extruded bottles are also doing well.
“We are working with our customers on a range of new different shapes, textures and finishings. There are a bunch of things going on.
“Digital printing is moving forward. Personalisation is also a big thing. Consumers like it when you de-commoditise a product, making it personal and fun. ”