Can maker Rexam expects lower full-year costs

April 28 (Reuters) - British drinks can maker Rexam Plc (LSE: REX.L - news) reported a 5 percent jump in first-quarter can volumes and said it expected costs to be lower this year as aluminium premiums have dropped sharply.

Rexam, which is being bought out by U.S. rival Ball Corp (NYSE: BLL - news) , said it now expects the impact on costs to be 10 million pounds to 15 million pounds ($15.25 million-$22.87 million) this year.

The company said in February that it expected a 30 million pound hit to costs due to high aluminium premiums.

Can makers have been contending with record-high aluminium premiums, and the cost of getting the metal out of storage was expected to peak again by mid-2015 due to a supply deficit in the United States and Europe. ($1 = 0.6558 pounds) (Reporting by Roshni Menon in Bengaluru; Editing by Anupama Dwivedi)