Falling Supply Supports Higher Secondary Lead Prices; Battery Sales Outlook Gloomy

SHANGHAI, Jun. 16 (SMM) – Last week, secondary lead prices rose with falling supply and rising price of scrap batteries, Shanghai Metals Market learnt. 

 

Environmental protection inspections and labor shortages in the harvesting season resulted in production halts at some producers, reducing market supply. Besides, the price of scrap batteries, the main input for secondary lead smelters, grew slightly due to supply shortages, cutting into their profit margins.  

 

Price volatility is expected in the secondary lead market for the foreseeable future due to warmer weather and the end of harvesting season, SMM foresees.  

 

In other news, it is a traditionally peak demand period for lead-acid battery in July, August and September. Polar plate and battery producers usually build up finished goods inventories from middle or late May to prepare for the high demand season. 

 

However, weak end-user demand and intensified price war among leading battery producers have cast a shadow over sales outlook this year’s peak season. The sluggish secondary lead market since early year also adds to market pessimism.