Can-makers hit by rising input cost

Metal container makers say that they are facing serious problems because of higher cost of input – tin plates -- and consumer resistance against tin can price hike. Sanjay Bhatia, President, Metal Container Manufacturers Association of India, told Business Line that despite softening of prices in hot rolled steel coils internationally, domestic prices of HR coils have gone up by Rs 2,000 a tonnes recently. He said certain grades of tinplates (derived from HR coils) is imported. “Can makers are largely dependant on domestic supplies and import around 40 per cent of the raw materials. However, fall of rupee against the dollar has increased the landed cost of imported inputs,” he added. Because of the consumer resistance, tin can makers could only hike prices by around 2 per cent. Tin cans are used to pack consumer products such as food items, dairy products, edible oils, tea, coffee, paints, shoe polish and aerosol products. —

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