Tin can firms forced to increase prices

Tag : Canned Sardines

With surging prices of tinplates now at $ 1,600 per metric ton from,350 in April this year, plus rising costs of freight, packagingmaterials and other inputs, local tin can manufacturers are forcedto adjust prices by 12 to 15 percent starting next month, said theTin Can Manufacturers Association of the Philippines Inc. in itsnotification to the Department of Trade and Industry.

Henry Tanedo, president of TCMAPI said this is contained in itsnotification letter to the Department of Trade and Industry of thenew price adjustments of tin cans for canned goods.

"We cannot sell below cost but in our industry, people want tobecome the market leader and that prevented us from raising pricestoo much so even without the government telling us we can onlyimpose very minimal increase," he said.

At 12 percent increase, Tanedo said, this would translate to40-centavo increase in price per can or P3.80 price per can fromthe current P3.40. Tinplates account for 70 percent of tin canmanufacturers total production cost but in terms of total cost ofsardines, it only accounts for 30 percent of a P10.50 price cannedsardines.

But Tanedo denied reports that tin can makers have raised prices byP2 per piece saying it is impossible because prices of tin canshave remained stable for the past four years at P3.05 a piece andwere only raised in April this year by 40 centavos to P3.40 perpiece as prices of tinplates went up to $ 1,350 per MT from $ 1,163per MT in 2005.