NEW YORK Prices for scrap aluminum wheels have remained
relatively steady since the middle of June, but market sources
said that a glut of material coupled with annual summer
shutdowns at mills could bring tags down in the coming weeks.
Free-market transaction prices for 356.1 wheels are in a range
of 85 to 88 cents per pound, unchanged since June 17, sources
We are getting a lot of material offered to us, one
buyer told AMM. In fact, we have been getting a lot of
calls from people we have never heard of. Overall, we are
paying around 85 to 86 cents per pound for rims, which is
pretty much what we were paying last month.
The primary aluminum cash contract on the London Metal Exchange
ended the July 8 official session at $1,736.50 per tonne (78.8
cents per pound), down nearly 3 percent from $1,789.50 per
tonne (81.2 cents per pound) June 17.
Prices for scrap aluminum wheels have remained supported
despite the decline on the LME, market participants said.
Rim prices are still above the historic relation to the
LME, a second buyer said. We should be paying in
the 80-cent range for rims.
He noted that he had seen new players enter the market, which
usually causes spreads to tighten. When new people come
in the marketplace they always drive the price up because they
are looking to take business away from the established