Aluminium price “fix”
Well, if the general public didn’t have enough reasons to hate investment banks now there is another one.
According to an investigation by the New York Times one investment bank’s ownership of warehouses in Detroit in the US, is allowing it to move aluminium around between its sites.
The practice is not illegal but does exploit the rules somewhat and it means a big chunk of the sales of canned drinks aren’t going to the people who actually make those cans or the drink they contain.
Obviously the prices of both steel and aluminium impacts on the production of cans all around the world.
As the American and European markets have been largely stable (glass half full) or not growing (glass half empty) any manipulation of the price of raw materials is bad news of the industry.
Cans face pressure from plastic, glass and other packaging forms so bad publicity like this is definitely not needed.
Anything that can give fillers the opportunity to move away from something because they fear their customers consider it too expensive is a problem.
Look at Nestlé it knows there’s nothing wrong with BPA, but it’s getting rid of it anyway.
Add that to the fact it’s still a tumultuous financial climate and there’s no reason to create reasons to tarnish the otherwise great image of metal packaging.