What Factors behind Lower-than-Expected Orders at Motive Battery Producers in Peak Season? SMM Reports

Published: Jul 7, 2017 09:53

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Most producers report poor new orders from the beginning of July, and even a year-on-year decline.

SHANGHAI, Jul. 7 (SMM) – Motive battery market enters peak season in July-August by traditional. However, most producers report poor new orders from the beginning of July, and even a year-on-year decline.

SMM attributes 3 major factors to the decrease.

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First, battery price grew constantly in June, following price surge in lead market. As such, battery distributors built stocks with optimistic outlook, and some battery producers delivered goods recently due to tight finished goods supply after big increase in orders in a short term. So, motive battery inventories at most distributors can be consumed for about 20 days at present.

Second, distributors in face of no significant improvement in battery end-user market sell goods mainly by on-hand stocks.

Third, lead price drops slightly from the beginning of July, raising distributors’ risk aversion sentiment. So, those do not plan to purchase goods in a short term.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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