Novelis has increased the price it pays for aluminium cans by ?100 per tonne today (January 25), the third time it has raised the amount it offers for the material this month.
The price increase means that it will now pay councils, waste management companies and other collectors ?800 a tonne for loose aluminium used beverage cans (UBCs) and ?850 a tonne if the cans are baled or densified.
Outlining the reasons for the increase to letsrecycle.com, Novelis' UK recycling manager, Andy Doran explained that it illustrated the company's "long term strategy to pay competitive prices for quality material."
"It also shows our ongoing commitment to the UK market and close working relationship with suppliers," he said, adding that the increase was also intended to reflect price rises in the aluminium market as a whole.
The price increase would appear to add weight to claims made by the company - which is the UK's largest recycler of aluminium cans - that it aims to increase both the volume and percentage of cans it sources domestically this year (see letsrecycle.com story).
Currently, Novelis buys the majority of its cans from mainland Europe, and Scandinavia in particular.
It also comes against the backdrop of the aluminium recycling sector preparing for expected higher packaging recycling targets for 2011 and beyond which would require more material to be recycled in the UK.
A consultation on packaging recycling targets for 2011 to 2020 is expected to be published in the next few months (see letsrecycle.com story).
This latest price increase - which means the Warrington-based company has added ?250 per tonne to the price it pays for cans since the start of the month - also brings the price back to the peak it reached in the summer of 2008, before markets for recyclables crashed.
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