South Africa: Tin plate price hike will result in downstream suppliers increasing prices by 35 - 55 percent - SABMiller

SABMiller Plc’s South African unit said it’s “disappointed” after steelmaker ArcelorMittal South Africa Ltd. raised prices of tin plate, used to make beverage and food cans, Bloomberg communicated on March, 27.

“This will result in downstream suppliers in the South African packaging industry increasing prices by between 35 percent and 55 percent,” South African Breweries (SAB) Ltd. said.

ArcelorMittal, Africa’s biggest steel supplier, said a day earlier it plans to increase tin plate prices for food products by 69 percent and beverage products by 79 percent next month. Price changes take place annually and are based on domestic prices in a range of countries including the U.S., Germany, and China, it said.

“The impact will see double-digit increases across all canned foods,” the South African Fruit and Vegetable Canners Association said March 24.

International tin plate prices rose 22 percent in the past year, the steelmaker said. The rand lost about 30 percent against the dollar.

01 April, 2009