(Reuters) - British drinks can maker Rexam Plc (>> Rexam PLC) 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 (>> Ball Corporation), 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.

(Reporting by Roshni Menon in Bengaluru; Editing by Anupama Dwivedi)

Stocks treated in this article : Ball Corporation, Crown Holdings, Inc., Rexam PLC