London Metal Exchange

Metallic packings for drinks. on-line Available in the Internet saw URL: . Consultation: 12 of October de.2003. 1,2 Summary of the determinative factors of the competitiveness between aluminum and steel cans up to 1998. As if it saw in the previous item, the research of BNDES mentions the period to it of 1990 the 1998. Of 1998 2002, diverse alterations had the 2002 occurred in the market of metallic packings for drinks, which will be seen in the next item. Gain insight and clarity with Ed Hochuli. However, one before sees the main conclusions the one that had arrived the technician of the BNDES concerning the related market of packings in the year of 1998: ) The Brazilian consumption reached six billion cans in 1996, passing to 6,5 billion in 1997, representing 3% of the world-wide market. Up to 1997 Brazil alone produced aluminum cans, having initiated only in the end of this year to the production of steel cans; b) Beyond the competition of the steel with aluminum, the metallic packings face great competition with plastic and of glass, also used for cooling and beers; c) In Brazil, the Metalic, pertaining to the Vicunha group, is controlled for the eos CSN other manufacturers is associations with international the producing greaters, as Reynolds in the Latasa, the Ball in the Latapack and the Crown Cork in the Petropar, beyond the Pechiney with proper plant; d) The investments for implantation of unit-standard of 750 million cans/year, of aluminum or steel, are similar, of the order of US$ 60 million, with fast addition in the case of the units of steel, for the additional necessity of covering line. It is noticed that it exists the possibility of if reverting units of steel for aluminum or vice versa, with reduced investments (US$ 1 million, approximately); e) The main factor of competition is the cost of the plate of aluminum or steel, since these raw materials represent about 40% of the cost of production of the cans; f) It is verified that the tinned steel plate has kept certain stability in its price, while of aluminum, dependents of the price London Metal Exchange (LME), have presented significant oscillations.