NEW YORK Scrap
aluminum wheel prices continued to fall this week due to
weakening terminal markets coupled with lower demand.
transaction prices for 356.1 wheels have fallen to 79 to 83
cents per pound from 82 to 84 cents Oct. 28, according to
Unlike some secondary
items, wheel prices often are directly tied to movements on the
London Metal Exchange, one seller told AMM. "Some of
the bigger smelters have contracts that are directly tied to
the LME," he said, adding that some of his bigger consumers
were "sitting on inventory" and "waiting for things to pop in
the first quarter of next year."
A second seller said
he had seen a steep drop in demand since the beginning of
November. "Its very soft right now," he said. "I think
most consumers are long on inventories and automakers have
their fill for the time being."
The primary aluminum
cash contract on the LME ended the official session Nov. 11 at
$1,760.50 per tonne (79.9 cents per pound), down 4.3 percent
from $1,839 per tonne (83.4 cents per pound) Oct. 28.
Prices for 356.1 alloy
have remained steady over the past month at $1.09 to $1.11 per
pound, although several participants warned that if the LME
continues to fall, secondary aluminum alloy prices likely will