SHANGHAI, Dec. 25 (SMM) – A significant number of Chinese motive battery makers frequently cut or halt operation later December because of weak orders.
End-user consumption weakens further currently in domestic motive battery market and news of price hike by leading battery makers has been digested by market.
SMM survey of 10 motive battery makers indicates that four of them keeps operating rate at 70-80%, versus 50-60% at three of them. Two makers run at full capacity and one already suspended production for Chinese New Year holiday.
“Battery inventories pile up at battery makers because of sluggish demand and low buying interest at distributors. Some producers thus cut operating rate by 10-20 percentage points. Should inventories grow further, some producers will start holiday ahead of schedule with only one month away from Chinese New Year holiday. Some plan to start vacation on January 15 while most on January 25 at latest” some battery makers said.
Declines in operating rate will continue into January at Chinese motive battery makers as most workers will return their hometown for holiday.
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