Rexam, which shed its UK glass unit for a £24m loss earlier this year, said it has benefited in the first half of 2005 by successfully passing on aluminium price increases to its beverage can customers. Rexam is the world's largest beverage can manufacturer. The company reported organic sales growth in the first half of 2.5%, of which 1.9% were due to the recovery of aluminium price increases in its beverage can segment. Organic sales excludes the effect of acquisitions,disposals & currency translation. Whether Rexam will be able to successfully pass on further expected price increases in aluminium, along with higher energy costs, remains an open question. Aluminum demand will outstrip supplies this year, with primary aluminium prices on the LME rising about 12% in the 1st qtr. Prices fell dramatically in the 2nd qtr but in the 7-months to July have risen 5.5%.
