Aluminum losing traction in wheel market.

Aluminum will lose some of its hold on the American wheel aftermarket to fabricated steel over the coming years, according to Frost and Sullivan Research. Stratecasts Inc., Fort Myers, Fla., also indicates that cast magnesium will gain on the industry staple during that time.

"Aluminum wheels will continue to remain the most prominent market segment, dominating the light vehicle market, but it is likely to lose a portion of its market share to styled steel wheels from 2006-2012," said Frost & Sullivan Research Analyst Kyu-min Oh.

By incorporating micro-alloy steel manufacturing methods, wheel enterprises are able to manufacture steel wheels that match aluminum ones in their look and weight, all at a marginal manufacturing cost. Research also indicates that end-users consider steel wheels safer than aluminum ones.

Further, North American automakers are in the process of introducing various new vehicle models equipped with styled custom wheels as part of their original equipment. With participants in the wheel aftermarket scouting for ways to decrease manufacturing costs, some companies are likely to switch over to producing styled steel wheels during 2006-2012.

In 2005, fabricated steel wheels made up 15% of the automotive wheel market, according to the "Demand and Supply Forecast for Metal Castings in the United States" by Stratecasts. Low pressure diecast aluminum claimed 75% of that market, with the next closest cast metal--magnesium--at 5%. The remaining 5% of the market are held by other metals. Stratecasts forecasts that magnesium will make gains in the coming years, though, reaching 8% by 2009. The success of magnesium will largely hinge on metalcasting facilities' ability to implement corrosion resistant properties in the metal.