NEW YORK Prices for scrap
aluminum wheels have fallen 2 cents per pound from last month,
but tags continue to be buoyed by strong demand from producers
of 356.1 alloy, market participants said.
Free-market transaction prices
for 356.1 wheels are in a range of 88 to 92 cents per pound,
down from 90 to 94 cents in February, traders said. One buyer
reported seeing some prices as high as 96 cents per pound
despite the overall decline.
"While we had been offering 91
to 92 cents for rims, we ran into some producers buying rims at
95 and 96 cents," the buyer said. "Its cheaper to buy
rims at 95 cents than to buy P1020 at 99 cents and add silicon
to produce some lower prime equivalent 356 alloys, especially
if you dont have many scrap options other than
"Tight margins continue to
present challenges in all aspects of the scrap market,
including rims," a second buyer said. "I know there are offers
out there in the low 90-cent range, but I have made sales
mostly at 88 to 89 cents."
Month-to-month demand was mostly
unchanged, sources told AMM. Describing 356 wheels as
"somewhat protected right now," a third buyer noted that
"competition for the product is pretty high, mainly because
alloy prices have remained steady amid a shaky market."