Upswing for aluminium aerosol cans and tubes in 2010

The German manufacturers of aluminium aerosol cans and tubes have reported double-digit growth for the first eight months of 2010.

Driven by a significant increase in demand from the core markets cosmetics, pharmaceuticals and technical products, and numerous promotions by large clients, orders received were up 30 per cent for aerosol cans, up 13 per cent for flexible aluminium and laminate tubes and up 22 per cent for rigid tubes and cans for technical products. In the case of aerosol cans, the results are thus again better than they were in the record year 2008, and at the moment there is no sign of an end to the vigorous demand.

The surprisingly strong demand has led to shortages of feedstock, such as aluminium slugs and plastics, which have recorded enormous price rises. According to Dr Monika Kopra-Schäfer, Chair of the Tubes, Cans and Impact Extrusions Division of the German Aluminium Association (GDA) and Managing Director of Linhardt based in Viechtach, “The price of slugs does not only reflect the price of aluminium on the London Metal Exchange (LME); it also contains components such as premiums for insurance and transport and the margin for converting the aluminium into slugs. There have been significant price increases here in recent months and these have been clearly felt by the sector. It is not always easy to explain these complex interrelationships, but nonetheless neces-sary. After all, the sector needs adequate margins in order to also continue being capable of investing and remaining competitive.”

Overall, the German manufacturers have emerged stronger from last year’s crisis as a result of well-directed cost reductions and increases in productivity whilst embarking on a quality drive at the same time. This is now paying off because for clients the excellent product quality, reliability and security of supply have become key requirements during the current boom in order to avoid out-of-stock situations.