April 28 (Reuters) - British drinks can maker Rexam Plc reported a 5 percent jump in first-quarter can volumesand said it expected costs to be lower this year as aluminiumpremiums have dropped sharply.
Rexam, which is being bought out by U.S. rival Ball Corp, said it now expects the impact on costs to be 10million pounds to 15 million pounds ($15.25 million-$22.87million) this year.
The company said in February that it expected a 30 millionpound hit to costs due to high aluminium premiums.
Can makers have been contending with record-high aluminiumpremiums, and the cost of getting the metal out of storage wasexpected to peak again by mid-2015 due to a supply deficit inthe United States and Europe. ($1 = 0.6558 pounds) (Reporting by Roshni Menon in Bengaluru; Editing by AnupamaDwivedi)