SHANGHAI, Aug 10 (SMM) – The operating rate at lead-acid battery plants across China failed to rebound as expected and dipped 4.06 percentage points from June to 55.37% in July. The figure fell 15.58 percentage points on a yearly basis.
The lead-acid battery industry did not enter its traditionally high season in July and this accounted for the lower operating rate.
Market concerns about declining prices of lead kept lead-acid battery traders purchasing as needed. For producers, their purchasing prices of lead agreed in long-term contracts stood higher than spot prices. With higher costs and slow demand, producers lowered operating rates or closed for up to a week.
While the average price of lead stood at 19,818 yuan/mt for July, SMM assessed 1# lead at 18,700 yuan/mt at the end of last month. This compared with a price of 21,150 yuan/mt at the start of July.
New environmental probes continued to keep most lead-acid battery plants in Jiangxi province suspended in July. Fresh probes took effect after inspectors from the central government left at the end of June, SMM learned.
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