SHANGHAI, Feb 20 (SMM) – About two-thirds of lead-acid battery producers in China have resumed operations as of the third week of February, but manpower shortages and logistical constraints limit operating rates, showed the latest SMM survey.
The proportion of resumed battery producers is high in Jiangsu, Shandong, Jiangxi and Guangdong, lower in Anhui, Henan and Zhejiang, and the lowest is seen in Hubei, the epicentre of the coronavirus epidemic.
Leading companies took the lead and resumed operations in the week of February 10. Large and medium-sized firms followed suit in the week of February 17, while strict virus containment measures forced companies in some regions to remain shut and they had to delay the resumption to this week.
Operating rates at Chinese lead-acid battery producers now are 30-60%, and companies with the majority of workers being locals could operate at a rate of about 70%.
Lead-acid battery producers are unlikely to recover to stable production until early March, given the 14-day quarantine rules and battery shipping constraints.
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