Zero for steel cans as aluminium can price drops by 100 p/t

As with the Corus price cut, the Novelis reduction takes effect from today (November 3), and sees the price for baled or densified cans delivered to one of the Warrington-based firm's aggregation centres cut from £550 per tonne to £450 per tonne.

And, the price offered for loose cans has been reduced from £500 per tonne to £400 per tonne.

The company cited “continued weak market conditions” as the reason for the decrease, and Novelis' national recycling manager, Andy Doran, attempted to reassure suppliers of used beverage cans (UBC) about the cut.

“We are reducing our UBC-price further to reflect the current, unprecedented market conditions. We remain committed to developing aluminium can recycling in the UK and will strive to ensure that our suppliers receive a competitive price,” he said.

The Novelis announcement represents today's second major blow from the secondary metals sector for councils, waste management companies and scrap metal merchants, coming hot on the heels of Corus' announcement that the price if offers for steel cans has reached zero (see letsrecycle.com story).

Steel

The Corus' reduction means that the price paid for steel cans delivered to one of its CanRoute centres has fallen from £235 per tonne to £0 per tonne in less than five months as a result of falling demand for new steel products.

In a statement, the company said: “This reduction, from £10 per tonne, is due to the global economic slow-down and the resulting decline in orders for new steel products in the UK, particularly in the automotive and construction sectors.

“A knock-on effect of this reduced demand for new steel products is a reduction in demand for all scrap steel to be used in the steel production process, resulting in a drop in demand – and value – of steel packaging delivered to CanRoute centres,” it added.

Reflecting the impact of the slowdown on its CanRoute operations, Corus also confirmed that it will not be accepting new suppliers of steel cans for the network until further notice.

“Corus will continue to monitor developments in the scrap steel market and will review the price on an on-going basis. We will not accept any new applications for CanRoute supplier status for the time being, but we are happy to discuss alternative markets for the material with collectors,” it said.

“Corus remains committed to the recycling of packaging scrap in the UK. We understand the importance of recycling this material and will provide a market wherever possible,” it added.