Metal Price Index

Metal prices—especially aluminum and steel—have a direct and often immediate impact on the cost of aluminum beverage cans, can ends, and steel food cans because metal is the largest cost component of these packages. Prices for aluminum and steel are largely referenced to global metal exchanges, most notably the London Metal Exchange (LME) for aluminum (and related products) and, indirectly, for steel through indices tied to hot-rolled coil and tinplate, which are influenced by iron ore and scrap markets. The LME publishes prices that change continuously during trading hours, reflecting real-time supply and demand, macroeconomic conditions, energy costs, geopolitical risk, currency movements (especially the USD), and inventory levels; these prices are then averaged over a month or quarter and used as a benchmark in packaging contracts. Can makers typically price finished goods using a metal index pass-through model, where the base metal price (e.g., LME aluminum) is passed directly to the customer, while conversion costs (forming, coating, ends, logistics, margin) are added on top—meaning changes in LME flow quickly into can and end prices. Steel food cans work similarly, though pricing is often more regionally negotiated and less transparent than aluminum, with tinplate prices adjusted periodically based on mill announcements and raw material trends rather than daily exchange trading. In terms of market trend, aluminum and steel prices have become more volatile in recent years due to energy price sensitivity, decarbonization pressures, supply chain disruptions, and demand swings from beverage, food, and automotive sectors; forward-looking forecasts generally expect continued volatility rather than stable decline, with sustainability costs, recycling demand, and geopolitical uncertainty keeping prices structurally higher and more dynamic than in the past.

Resources:

https://www.lme.com/markets/metals

https://www.lme.com/en/Metals/Non-ferrous/LME-Aluminium