Metals News
Inventories at China Battery Makers Fall Slightly in February
industry news

SHANGHAI, Mar. 11 (SMM) – Average inventory at 30 Chinese lead-acid battery producers was at 17.05 days in February, a decline of 3.15 days from January, SMM surveyed.

Those surveyed producers have an annual capacity of 201.8 million kvah and consume 3.84 million-tpy lead, covering 17 motive battery makers, 10 ignition battery producers and 3 backup battery makers.

The 2016 Chinese New Year holiday fell on February 7-13. Motive battery producers rushed to build stocks before holiday while post-holiday stock-building interest slipped markedly from 2015. Consequently, some battery makers lowered production or started sales promotion in February to avoid pile-up in inventories.

Work days were shortened by the holiday in February and production at some ignition battery producers was contained by worker shortage. Limited inventories were left at ignition battery makers due to improved demand and hence, downstream buyers were active in hoarding stocks after holiday. This led to supply tightness at some battery makers and drove down inventories in February. 

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