Soaring steel to make can food expensive

Arab News: "Canned food is going to be costlier in the near future because of the soaring steel prices globally, warns a packaging industry executive.

Food industry selling ready-to-eat items like luncheon meat, sausages and hotdogs as well as dairy products and legumes packed in tin cans aIt is going to effect even non-food items like pigments and auto lubricants. Afroz Hadi, marketing manager of Dubai-based Arabian Can Industry, says tin prices will also face similar price pressures because tin is used to coat steel to prevent corrosion.

Since the construction and automobile industries are rebounding after a two-year slump, tin will also become more expensive. Tin is currently selling at $1,400 to $1,500 per ton. In 2008, just before the start of the global financial crisis, steel prices peaked from $900 per ton to $1,900 per ton.

“There are indications that this will touch the 2008 level of $1,900 in coming months,” Hadi said.re watching the global trend with concern as tin is not only going to be costlier but also it may become scarce if steel prices continue to rise."