Novelis cuts price for aluminium cans scrap

Lets Recycle reported that Novelis has cut the price it pays for used beverage cans but claim that the market could grow in 2009. The price being paid by Warrington based Novelis which is the largest aluminium can recycler in the UK has fallen to EUR 525 per tonne for baled or densified and strapped cans delivered to its aggregation centers while the price for loose cans falls to EUR 475 per tonne. The price being paid for the material in July had been EUR 600 per tonne for baled or densified and strapped, while loose cans had fetched EUR 550 per tonne. Mr Andy Doran national manger at Novelis said that "We look on it as that the aluminium industry is not different to any other industry in the current economic climate and there are challenges for us all and there is ongoing volatility for us all in that we have to change our prices to reflect that." Prices being paid for the material peaked in August 2008 but suffered a series of cuts following the onset of the recession. The first increase in prices for eight months was seen in April this year when Novelis announced it would be increasing prices by EUR 100 per tonne for UBC. Mr Doran said that he is still confident that the material can remain a viable commodity in the long term and said that Novelis offers a "guaranteed" outlet for recovered cans from local authorities and waste management companies. He said that "We are still offering a guaranteed market for beverage cans in the UK and our output from our factory at Warrington for our product remains strong and there is still relatively strong demand for that. The can market is potentially still going to maintain itself and maybe grow in 2009, this is just the way it is at the moment." Novelis operates Europe's largest dedicated used aluminium beverage can recycling plant at Warrington in Cheshire. The plant produces ingots for the beverage can manufacture industry and has the capacity to recycle 130,000 tonnes of UBCs per annum more than every aluminium drink can sold in the UK. (Sourced from letsrecycle.com