NEW YORK Scrap aluminum wheel prices have fallen since the start of June amid recent downturns on the London Metal Exchange, coupled with a summer slowdown, sources told AMM.
Free-market transaction tags for 356.1 wheels are at 85 to 88 cents per pound, down a penny from the May 28 price of 86 to 89 cents, traders said.
"We are quoting 88 to 89 cents per pound for rims," one alloy producer said. "(We) have been bumping to 90 (cents) if we need the metal, but we are trying to push the price down to around 86 to 87 (cents) due to the lower LME."
The cash primary aluminum contract on the London Metal Exchange ended the official session at $1,789.50 per tonne (81.1 cents per pound) June 17, down 2.8 percent from $1,840.50 per tonne (83.5 cents per pound) 30 days earlier.
"We just spoke to a buyer who quoted 85.5 cents," one scrap trader said. "I think the market is around 87.5 cents, which is down at least 2 to 4 cents from the end of May."
Others said that supply has increased significantly over the past three weeks.
"We have plenty of material being offered to us," a second buyer said. "We have been scratching our heads wondering where all this supply is coming from. Nobody can figure it out."