Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
      Bridgestone Iowa plant navigates pandemic, demand
    • Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
      Online retailer CARiD.com looks to triple size of tire/wheel installer network
    • Video: Michelin looks to diversify for additional growth opportunities
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      Vipal Rubber retread guarantee program hits milestone
    • Love's adds 6 Speedco servicing sites to its Travel Stop network
      Bridgestone hosts vaccination events for plant employees
      Jinyu Tire starts truck tire production at Vietnam plant
      Vipal Rubber retread guarantee program hits milestone
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Video: Michelin looks to diversify for additional growth opportunities
      Conti adding dynamic driving simulator at German R&D center
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
    • Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
      Bias-ply tires return to NASCAR Cup Series for Bristol dirt race
      Hankook named race tire supplier for touring car series in Europe, Japan
    • Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Cooper adds Rugged Trek all-terrain to Discoverer LT/SUV tire line
      Hankook unveils Vantra specialty trailer tires
    • Bauer Built promotes pair to VP positions
      TECH Americas adds Haggerty to marketing team
      Snap-On introduces TreadReader handheld tire scanner
      Discount Tire adopts mobile tread-depth scanning system
    • Snap-On introduces TreadReader handheld tire scanner
      Marked for winter: Origin of Three-Peak Mountain Snowflake
      Post-repair message adds personal touch
      Cioffi: Will remote working be the new normal?
    • SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
      TIA seeking nominations for Tire Industry Hall of Fame
      SEMA survey shows resilient auto aftermarket in 2020
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Maxxis offers discount to ChampCar competitors
      Jinyu Tire starts truck tire production at Vietnam plant
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TPMS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
June 07, 2004 02:00 AM

Steeling for even more price hikes

Lisa Aichlmayr
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Historically the source for low prices on custom wheels, steel wheels are having their own prices rise as raw materials costs fluctuate.

    It's a scenario that may limit the market segment further against its rival aluminum.

    Steve Kelley, vice president of sales and marketing for distributor American Racing Equipment Inc. (ARE), said raw steel prices have risen about 30 percent in the past 90 days, leading to a 15-percent hike on finished goods.

    ``The customers have taken it, they understand,'' he said of Rancho Dominguez, Calif.-based ARE's dealer customers. ``That's something you have to pass on; it's a raw material increase.''

    The price volatility is primarily from a low supply of steel, caused both by fewer producing mills in the U.S. as well as much of the product going to China to support its fast-growing economy. Mr. Kelley expects the steel prices to come down eventually once supply inches back up toward demand.

    ``They've closed so many mills, especially in the U.S. over the past 20 years, they've got to fire up some new ones,'' he said.

    But Dave Simas, operations officer at Northwest Tire Factory group in Portland, Ore., isn't so sure that's going to happen soon. A regular visitor to China, he said infrastructure growth there is phenomenal and can support the growing economy. ``They may claim they're communists, but it looks to me like they're capitalists,'' he joked.

    Mr. Simas said Northwest Tire has had to raise prices 7-10 percent on steel wheels at its members' retail stores to compensate for the higher prices. Also, he said fill rates have suffered up to a 25-percent reduction due to the shortages. The dealership orders about 250 steel wheels a week.

    Mr. Kelley at ARE said the company hasn't had major supply problems. ARE handles about 250,000 custom steel wheels a year.

    For now, Mr. Simas said Northwest Tire is looking to adjust ordering to keep ahead and may augment its supply with other vendors if necessary. He said the dealership group isn't in a ``dire situation'' for steel wheels, but the segment represents a stable, important part of the dealer's business. Northwest Tire also sells aluminum wheels in addition to tires.

    ``It's a real steady thing for us,'' he said. ``It hasn't really diminished at all in the last five to seven years we've been doing it.''

    Steel, once the material of choice for most automotive wheels, increasingly has been sidelined as aluminum, which is lighter and easier to design, became less expensive. With steel prices rising, some customers who bought on the high end of the steel spectrum may switch to the low end of aluminum.

    ``It's like bias vs. radial. The gap's closing,'' said Dave Jones, senior vice president of sales at distributor Tireco Inc., which markets both steel and aluminum wheels in addition to its main tire business.

    Steel will always have a place on some aftermarket wheels, such as trailer wheels, Mr. Jones said. But its share of passenger vehicles is likely to diminish as aluminum gets less expensive and has better designs.

    ``I don't think you're going to see it totally evaporate,'' Mr. Jones told Tire Business. ``You're certainly going to see it shrink, to what extent who knows. These aluminum manufacturers are getting more and more creative all the time.''

    Mr. Simas said still other customers are dedicated to steel, whether for wheels used for winter weather in Montana or just out of long-standing trust. Besides, he said, a 10-percent increase on a steel wheel that costs $25 is a slight $2.50 extra.

    Mr. Kelley agreed that steel always will have a small piece of the aftermarket wheel pie.

    ``It will never die,'' he said. ``It's still just going to be on the low end of the food chain, no matter what, even with the price increases.''

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award