Rio Tinto raises a glass to China’s growing use of aluminium beverage cans
Melbourne — A switch by China’s packaging firms to favour aluminium cans for beer and soft drinks is among key drivers that will underpin continued demand growth for the lightweight metal, according to Rio Tinto. The world’s second-biggest miner, which generates more than a quarter of its revenue from the metal, also sees demand being boosted by the forecast rise of electric vehicles and the push by manufacturers to produce lighter cars to reduce emissions, Rio’s aluminium unit CEO Alf Barrios said on Monday in an interview. "In the packaging sector, especially around soft drinks and beer in China, we’re seeing a shift from glass to aluminium," he said. Chinese beer makers, including Tsingtao Brewery, rose on Monday after both UBS and Goldman Sachs issued reports saying they expected industry-wide price hikes. UBS estimates 28% annual profit growth for the sector from 2018 to 2020 as demand recovers. London-based Rio forecasts aluminium demand to rise about 4% a year for the next fi...
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