Rising Costs Kick Price of Trusty Tin Can

Factiva: "The global recession is easing many costs for food and consumer-goods companies. Yet one simple but crucial product is soaring in price: the tin can.

Cans for food, aerosol sprays and many other consumer goods are made from 'tinplate,' sheets of steel covered in a thin layer of tin. Even though prices of pure steel and tin have fallen sharply, the average price of tinplate is expected to rise 25% to 35% this year in Europe, and 15% to 20% in North America, say tin-can manufacturers, packaged food companies and others. (Please see related article on page B2.)

Some tin-can makers are paying 50% more for tinplate than last year, says Rodrigo Vazquez, an analyst for research firm Harbour Intelligence.

Some tinplate manufacturers increased prices this year by 60% to 75% in the U.S. and 40% in Europe, according to one person familiar with several large tinplate contracts. Some types of high-quality tinplate doubled in price, this person said."