SHANGHAI, Sept. 22 (SMM) – Transactions for scarp batteries and secondary lead are suspended in north China at present due to stricter environmental protection inspections, SMM reports.
On Sept. 18, stricter environmental protection inspections hit Shandong and more than 20 producers relative to secondary lead, citing scrap battery traders, secondary lead smelters and scrap battery plastic shell processors, were inspected. The impact was expanded to Hebei, Henan and Shijiazhuang.
In the recent two weeks, large secondary lead smelters lowered procurement prices for scrap batteries by about 150 yuan in Henan, Hunan, Hubei and Anhui following the latest VAT rebate cut.
Henan Yuguang Gold & Lead cut purchase prices to 6,950 yuan per tonne from 7,130 yuan per tonne two week ago for scrap automobile batteries (white shell). And Hubei Jinyang Metallurgy and Hubei Chu Kay Metallurgy quoted 7,000 yuan per tonne on Sept. 21 and should lower the prices to 6,950 yuan per tonne this week. Purchase prices for scarp motive batteries fell to 7,530-7,550 yuan per tonne from last week’s 7,580 yuan per tonne at Anhui Huaxin Lead Industry Group. Even the cut in purchase prices, secondary lead producers still report losses.
Trading activities for scarp batteries are predicted to decline in the near future following the environmental protection inspections in Shandong and a cut in procurement prices by secondary lead smelters. And small secondary lead smelters may thus halt operation. Consequently, eased competitions may drive up operating rate at large smelters, SMM predicted.
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