In the past months all of the major plate producers have implemented large increases in the prices. These have been brought about by the significant increases in the price of aluminum. In fact, as I have written before, the plate price increases were lower than the extra costs of production of plates. The plate suppliers have absorbed some of their cost increases without passing them on in the higher prices they are charging.

I have just read an article from a major Canadian business newspaper reviewing the latest financial figures of Alcan Inc., the world’s second largest aluminum producer. This article appears to show future bad news for the printing industry. In the second quarter of 2006 Alcan's profits more than doubled and sales increased 17%. Aluminum prices at Alcan’s smelters climbed 33% on average as demand for aluminum increased from aircraft manufacturers and from building materials. Alcan's CEO stated demand will continue to grow in China and will outpace rising production in Asian countries that use 28% of the global aluminum supply.

Aluminum demand will probably increase 6.8% in 2006 and will leave a market deficit of about 300,000 tons of the metal. We can expect further increases in the cost of aluminum and that the plate manufacturing companies will pass on these increases.