Price War in Lead-acid Battery Industry to Continue in Short Term-Shanghai Metals Market

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Price War in Lead-acid Battery Industry to Continue in Short Term

Industry News 01:35:32PM Jan 06, 2014 Source:SMM

SHANGHAI, Jan. 3 (SMM) –

China’s Refined Lead Output in Main Production Bases Declines 8.67% MoM in Nov.  

Data from China Nonferrous Metals Industry Association (CNIA) showed that China’s refined lead output during last November dropped to 387,000 mt, down 8.67% from a month ago. YTD output through November, however, rose to 4.18 million mt, up 6.05% from a year earlier. Refined lead output in Henan, Hunan and Yunnan provinces, all large primary lead production bases, dropped 4.5%, 8.6% and 16.28%, respectively.    

Price War in Lead-acid Battery Industry to Continue in Short Term
 
Shen Weixin, the president of Hongkong Suzhong Group and chairman of Shanghai High Power Storage Battery, indicated that the price war in lead-acid battery industry was due mostly to overcapacity. In the wake of rigorous environmental protection inspections, the remaining large enterprises generally expanded their capacity by one fold. This, combined with these small illegal enterprises still operating, led to serious overcapacity. He added that the price war in lead-acid battery industry is here to stay. 
 
According to the Entrance Conditions for Lead-acid Battery Industry, production of lead-acid battery containing cadmium is prohibited since December 31, 2013. In addition, container formation processing technology can not be applied in projects of new construction, expansion and reconstruction. As a result, the lead-acid battery industry will usher in a new era of free cadmium production.    
 

Price War in Lead-acid Battery Industry to Continue in Short Term

Industry News 01:35:32PM Jan 06, 2014 Source:SMM

SHANGHAI, Jan. 3 (SMM) –

China’s Refined Lead Output in Main Production Bases Declines 8.67% MoM in Nov.  

Data from China Nonferrous Metals Industry Association (CNIA) showed that China’s refined lead output during last November dropped to 387,000 mt, down 8.67% from a month ago. YTD output through November, however, rose to 4.18 million mt, up 6.05% from a year earlier. Refined lead output in Henan, Hunan and Yunnan provinces, all large primary lead production bases, dropped 4.5%, 8.6% and 16.28%, respectively.    

Price War in Lead-acid Battery Industry to Continue in Short Term
 
Shen Weixin, the president of Hongkong Suzhong Group and chairman of Shanghai High Power Storage Battery, indicated that the price war in lead-acid battery industry was due mostly to overcapacity. In the wake of rigorous environmental protection inspections, the remaining large enterprises generally expanded their capacity by one fold. This, combined with these small illegal enterprises still operating, led to serious overcapacity. He added that the price war in lead-acid battery industry is here to stay. 
 
According to the Entrance Conditions for Lead-acid Battery Industry, production of lead-acid battery containing cadmium is prohibited since December 31, 2013. In addition, container formation processing technology can not be applied in projects of new construction, expansion and reconstruction. As a result, the lead-acid battery industry will usher in a new era of free cadmium production.