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Second drop in eight days for aluminium can price

Second drop in eight days for aluminium can price

Aluminium recycling firm Novelis has cut the price it pays for used beverage containers for the second time in eight days, as the economic slowdown continues to hit the secondary metals market.

The company, which is based at Latchford, near Warrington, has announced that, with immediate effect, it will pay £600 per tonne for both loose whole cans and loose and flattened cans delivered to one of its regional reprocessors.

The price paid by Novelis for UBC has dropped significantly since the summer
The price paid by Novelis for UBC has dropped significantly since the summer
And, it will pay £650 per tonne for cans delivered baled or densified and strapped.

This comes after it dropped the price per tonne for loose cans from £750 to £650 just a week ago (Monday 13 October), and also reduced the prices paid per tonne for baled/densified and strapped from £800 to £700.

Just two months ago, the price paid for loose cans was as high as £850 per tonne, and that offered for baled or densified cans reached a peak of £900.

Speaking to letsrecycle.com today about the reasons for the drop in prices, a spokeswoman for Novelis said: “We obviously keep a close track on the wider secondary metals market and this change reflects the downward pattern for prices.”

On Friday, steel giant Corus revealed that it would be significantly dropping the price it pays for steel cans and packaging delivered to its CanRoute network from £95 per tonne just £10 per tonne, also taking effect today (see letsrecycle.com story).

And, the economic slowdown is hitting other areas of the waste and recycling industry hard, with the recovered paper sector being affected by a fall in demand from mills and cancelled export orders (see letsrecycle.com story), while Veolia's French parent company yesterday indicated the crisis had affected its waste management business activity (see letsrecycle.com story).

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