Consolidations adding to growth

摘要

Consolidations and regional growth spurred canmaking in the first quarter and they should help performance in the remainder of 2016 and 2017. It is clear that China pricing has spooked the industry and seriously hurt both volumes and prices as the major canmakers avoided business that did not contribute to operating profit. Most participants regard the current China market developments as irrational. Offsetting the Asia fiasco is good news from the US and Canadian markets, which turned in gains of more than 10 percent in speciality cans. Also, the industry, fuelled by consolidation and the need to reposition plants, has increased capital spending to accommodate growth in eastern Europe, including Turkey, India and South East Asia, notably Cambodia, Vietnam and Thailand.