Aluminium vs. steel in beverage cans: What does it mean to be a devil’s advocate?

<p>Aluminium is way costlier than steel. The current official LME price of aluminium is US$1633 per tonne whereas steel billet price has been hovering around US$325 per tonne. The price difference between the two metals competing with each other in the beverage can making segment is a clear US$1305 per tonne. Since, we all know, everything boils down to money in business, then why do 75 per cent of global beverage can manufacturers prefer aluminium over tin-coated steel as the basic raw material for their end products? <br /><br />The reasons are: <br />&bull; Formability/workability of aluminium <br />&bull; Ductility of aluminium (in terms of the container not shattering/cracking in transit)<br />&bull; Inertness of the aluminium and little to no potential toxicity<br />&bull; Corrosion-resistant<br />&bull; Recyclability<br /><br />The "recyclability" factor is the chief reason why aluminium after &lsquo;passivation&rsquo; (aluminium, which happens to be highly reactive otherwise, forms a strong ionic bond with environmental oxygen to form an aluminium oxide coating that is very stable, resistant to corrosion and non-toxic) is used for crafting beverage cans.&nbsp; We are practically drinking out of aluminium cans that were once used by our grandparents!<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/ALU-CANS-cropped-300x239.jpg" alt="News" width="300" height="239" /><br /><br />Moreover, aluminium makes for a versatile printing medium on which any novel illustration can be made resulting in great value-addition. So, beverage can manufactures can rely on aluminium for creating a lasting brand image on their on consumers&rsquo; minds, which at the end of the day enhances the total <a title="Aluminium Packaging" href="http://blog.alcircle.com/2016/08/04/aluminium-packaging-facilitate-branding/" target="_blank">brand value</a> of their end product. <br /><br />In today&rsquo;s competitive business scenario, nothing pays off more than a brand ensuring higher customer value. It helps creating brand loyalty, induces repeat purchase, thereby driving in revenues offsetting cost of production significantly. &nbsp;<br /><br />However, tin-coated aluminium does pose as a major threat for aluminium in beverage can manufacturing space. But, given the continuous R&amp;D initiatives that are being taken by major aluminium producers globally in terms of down-gauging and light-weighting, the futuristic white metal is sure to maintain its monopoly in the years to come.&nbsp;</p>