* Aluminium premium rises to $500/t vs $300/t in early 2014
* Rise in aluminium premium to increase costs by 30 mln stgnext year
* Brazilian energy costs to rise by 15 million pounds nextyear
* Can volumes to slightly decline in North America, Europe (Adds CEO comment, details; updates share movement)
By Aashika Jain
Nov 13 (Reuters) - Rexam Plc, the world'ssecond-largest beverage can maker by revenue, is consideringraising prices for customers as it copes with surging aluminiumpremiums and Brazilian energy costs.
The company's stock was the top loser on the FTSE-250 MidcapIndex, declining as much as 8.5 percent in early tradeto its lowest in 16 months.
"We will try to share the risk with our customers but wecannot do it overnight as most of our contracts are for thelonger term... for the next year we are talking about it," ChiefExecutive Graham Chipchase told Reuters.
Aluminium premiums, or the cost to get metal out of storage,have soared to all-time highs in Europe and North America due tostrong demand and restricted access to the metal.
Rexam, which makes aluminium cans for Coca-Cola Co,Anheuser-Busch InBev, Heineken and PepsiCoInc, expects the increase in aluminium premium to $500per tonne to boost costs by about 30 million pounds ($47.32million) next year.
Aluminium premium, traditionally $100-150 per tonne, beganthe year at about $300, Chipchase said in August.
Rexam also expects Brazilian energy costs to increase by 15million pounds.
PRESSURE ON VOLUMES
Chipchase said can volumes in North America and Europe,Rexam's biggest markets, are expected to slightly decline to lowsingle digit and single digit, respectively, next year as demandfor specialty cans dampen.
"A series of external pressures are intensifying, notablythe aluminium premium, the Russian Rubble, and energy costs inBrazil," Bank of America Merrill Lynch analysts said in a note,lowering their objective price on the stock to 505 pence from545 pence.
"Furthermore, the trend towards global procurement contractscould represent a key risk into 2015."
Rexam said it expects margins on certain U.S. specialty canswould reduce next year and that it was reviewing its cost base.
In the third quarter ended Sept 30, overall global beveragecan volumes increased 4 percent, boosted by Russia, from wherethe company gets 5-6 percent of its business.
Shares in Rexam were down 7.06 percent at 447.3 pence at1109 GMT.(1 US dollar = 0.6340 British pound) (Reporting by Aashika Jain in Bangalore; Editing by FerozeJamal)
