As with any other non-renewable raw material, the rising costs of aluminum will have a major impact on the alloy wheel manufacturing industry. As demand continues to increase, supplies will deplete (as they already are) and manufactures are now trying various materials to replace aluminum.

The primary reason for this is cost – just as with any other commodity, aluminum is traded on the open market and as demand increases, so will the price for the raw material. A good example to look to is the correlation of crude oil prices and rising petrol prices; as crude oil prices kept rising on the commodities market, this directly affected the petrol prices at the pump. Petrol manufacturers and suppliers had to immediately increase their prices in order to continue purchasing the material. This practice is the same with any raw material including aluminum.

Demand for raw aluminum has steadily increased since the 1980’s and continues to do so to this day. In fact, in Russia alone, the increase was over six percent for the year 2006. The main reason for the increase is the continued use of alloy wheels by automotive manufacturers and the ever expanding automotive aftermarket industry. Since 1980, automobile manufacturers have gone from selling approximately eight hundred thousand vehicles with alloy wheels to over three million. It is predicted by 2010, this figure could top five million vehicles.

As for the aftermarket industry, alloy wheels have always been a feature product to promote and sell. During the late 1990's, largely due to young drivers wanting customize their vehicle, alloy wheel purchases exploded. Even automotive dealers have joined into the craze by offering new buyers the ability to enhance their vehicle with alloy wheels immediately and finance the expenditure with the vehicle’s lien note.

The problem being faced currently is finding a material that offers the same flexibilities as aluminum - price, strength and durability. Magnesium is coming back into the picture for alloy wheel production, however because of its' volatility properties, it is usually combined with aluminum which does nothing to remove current price and supply crunch. Carbon-fiber is an alternative being employed on some of the more expensive and performance based vehicles like Corvettes and Ferraris, however the price is extremely high when compared to alloy wheels and although it is a strong and light material, it is not nearly as durable. As often as drivers bump or jump a curb, it would not be a pleasant sight to see a shattered wheel because of it. Plastic is being tried in the production of alloy wheels, however the current problem is heat - plastic has as lower belting point and not quite the strength. Some alloy wheel manufacturers are currently trying mixing copper with the aluminum but getting a mixture that is durable and cost effective is difficult due to the properties of copper which make it a soft metal.

The one good point to this is unlike crude oil, raw aluminum prices do not directly and immediately affect the prices of alloy wheels in inventory. The price increases have been steady but incrementally gradual, so it has not been necessary to increase inventory prices, only new production shipments. Just remember that like any other commodity, raw aluminum prices will fluctuate depending upon current market trends and the law of supply and demand.

We suggest that you stock up your alloy wheels at the beginning of each year, we can hold them on the ground in Asia for you and ship as and when you need. We understand supply is outstripped by demand and the price rise is inevitable for the next 10 to 15 years with India and China opening up...

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