Steel Strip Wheels Spin Slower: June Sales Dip as Rare Earths Go Rare-er

Image Source: MoneyControl

Steel Strips Wheels Ltd (SSWL), one of the main wheel makers for vehicles, posted a 2% year-over-year reduction in net sales in June 2025, attributing supply restrictions in rare earth metals as a primary consideration to drive production—most significantly in the passenger car (PV) and other alloy-intensive segments.

SnapShot Key Financial – June 2025

Net Sales: Down 2% YoY
Segment Impact: PV and alloy wheel segments experienced the steepest fall
Reason: Interruptions in China's global supply chain of rare earth elements incorporated into alloy wheels and performance components

What's Driving the Supply Shortage?

Global Disruptions: Geopolitical tensions, export controls, and incremental build-out of alternative supply chains beyond China2.
China's Stranglehold: China's reduction of export quotas and regulatory changes, combined with over 80% global processing leadership in rare earth, have created bottlenecks for world manufacturers.
Impact on SSWL: The company's production of alloy wheels, depending on the rare earths neodymium and dysprosium, was affected by material shortages and thereby reduced June's output.

Company Outlook

While lower in the near term, SSWL is hopeful volumes will recover in H2 FY26, based on: