NEW YORK Secondary
aluminum wheels refuse to budge from a free-market price point
well above the cost of primary aluminum on the London Metal
Exchange, with strong competition for the item keeping prices
Scrap traders continue to put
aluminum wheels in a range of 86 to 88 cents per pound, even
though the LME cash price ended Fridays official session
at $1,860 per tonne (84.4 cents per pound). Aluminum wheel
prices remained unchanged even when the LME cash price fell as
low as $1,810.50 per tonne (82.1 cents per pound) on June 26,
although they are down from 94 to 96 cents per pound reported
in late May.
Scrap traders told AMM
that consistent demand for the item has kept prices stable and
"With the market being down the
price hasnt moved much. Its obviously an item
theres demand for," one buyer said.
"There are a bunch of guys out
there who use nothing but wheels, so no matter what the price
is, theyre paying it," a second buyer said.
Aluminum wheels have been
trading at a premium to the LME cash price for most of this
year, with traders reporting that it has become a popular item
due to its reliability in producing a 356.1 alloy.