Rexam may raise prices as aluminium premium, Brazilian energy cost weigh

* Aluminium premium rises to $500/t vs $300/t in early 2014

* Rise in aluminium premium to increase costs by 30 mln stg next year

* Brazilian energy costs to rise by 15 million pounds next year

* Can volumes to slightly decline in North America, Europe (Adds CEO comment, details; updates share movement)

By Aashika Jain

Nov 13 (Reuters) - Rexam Plc (LSE: REX.L - news) , the world's second-largest beverage can maker by revenue, is considering raising prices for customers as it copes with surging aluminium premiums and Brazilian energy costs.

The company's stock was the top loser on the FTSE-250 Midcap Index, declining as much as 8.5 percent in early trade to its lowest in 16 months.

"We will try to share the risk with our customers but we cannot do it overnight as most of our contracts are for the longer term... for the next year we are talking about it," Chief Executive 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 to strong demand and restricted access to the metal.

Rexam, which makes aluminium cans for Coca-Cola Co, Anheuser-Busch InBev, Heineken (Other OTC: HEINY - news) and PepsiCo Inc, expects the increase in aluminium premium to $500 per tonne to boost costs by about 30 million pounds ($47.32 million) next year.

Aluminium premium, traditionally $100-150 per tonne, began the year at about $300, Chipchase said in August.

Rexam also expects Brazilian energy costs to increase by 15 million pounds.

PRESSURE ON VOLUMES

Chipchase said can volumes in North America and Europe, Rexam's biggest markets, are expected to slightly decline to low single digit and single digit, respectively, next year as demand for specialty cans dampen.

"A series of external pressures are intensifying, notably the aluminium premium, the Russian Rubble, and energy costs in Brazil," Bank of America Merrill Lynch analysts said in a note, lowering their objective price on the stock to 505 pence from 545 pence.

"Furthermore, the trend towards global procurement contracts could represent a key risk into 2015."

Rexam said it expects margins on certain U.S. specialty cans would reduce next year and that it was reviewing its cost base.

In the third quarter ended Sept 30, overall global beverage can volumes increased 4 percent, boosted by Russia, from where the company gets 5-6 percent of its business.

Shares (Frankfurt: DI6.F - news) in Rexam were down 7.06 percent at 447.3 pence at 1109 GMT. (1 US dollar = 0.6340 British pound) (Reporting by Aashika Jain in Bangalore; Editing by Feroze Jamal)