MWS: Rising Steel Prices to Increase Aluminium Wheel Demand
The rising cost of steel will result in extra demand for forged aluminium wheels according to Motor Wheel Service (MWS) managing director, John Ellis. Over the last 12 months the price of steel billet has risen from $395 to $475 per tonne, rising as high as $600 per tonne in April 2010, and both the OEM industry and tyre manufacturers have been warned to expect price rises of up to 20 per cent for steel wheels come 1 September 2010. The company believes that when the increase takes effect, the difference between the cost of a steel and a forged aluminium wheel will be at an all time low, making the lighter and traditionally more expensive products a far more attractive proposition for commercial vehicle operators.
“…The price for steel has risen sharply over the last year and now these extra costs are being passed on by manufacturers. This has been expected by the market, but as compared to viewing the cost rise as a necessary evil many operators are looking at alternatives, with forged aluminium wheels being viewed as more affordable. It is widely acknowledged that the extra initial cost of buying forged aluminium wheels is recouped over a period of time thanks to its performance characteristics, and like the cost, this timeframe has decreased substantially,” John Ellis explained.
Motor Wheel Service, which has been promoting its xlite range of forged aluminium CV wheels recently is reportedly already experiencing this effect: “Our forged aluminium sales figures are definitely showing an upwards trend and the sales team is reporting an increase in enquiries, so as steel prices continue to rise, demand will improve also.”
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