NEW YORK Prices for scrap aluminum wheels have fallen slightly since last month as demand from producers of 356.1 alloy has weakened, according to market sources.
Free-market transaction prices for 356.1 wheels are in a range of 87 to 91 cents per pound, down from 88 to 92 cents in March, traders said.
One seller reported sales in the 85- to 86-cent range. "The big boys dont want to pay up right now, but I dont want to hold on to the material for an extended period," he said.
"Nobody is selling because they dont like the price," one scrap trader told AMM. "Most people are looking for 95 to 96 cents, but those numbers are not achievable in the current market."
"Demand from the mills is down," a second trader said, adding that either the mills had enough supply or they were cutting back on production. "We are not hearing the aggressive prices we used to hear."
Despite the scrap price decline, 356.1 alloy tags have remained steady for the past four weeks, with most producers reporting sales between $1.11 and $1.12 per pound.