China Motive Battery Market Reports Tight Supply after New Transportation Regulations

SHANGHAI, Sept. 29 (SMM) – Many regions in China recently reported tight motive battery supply after the release of Regulations of Highway Administration for Overload Vehicles effective September 21, SMM learns.

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Those regions included Zhejiang, Shandong, Anhui, Hunan, Hubei and Guangxi and the shortage of battery models expanded from large model batteries, such as 38Ah and 45Ah, to the normal models like 12Ah and 20Ah.

Motive battery market was in the transition period from peak season to off-season in September and end-user demand also weakened slightly from August. But why motive battery supply still tight?  

The release of new transportation regulations led to high transport costs and tight supply of trucks. SMM#1 lead prices averaged 14,525 yuan per tonne on Sept. 28, up 575 yuan per tonne from Sept. 1. Both factors stimulated leading battery makers to release price hike news frequently, which pushed purchase by distributors and retailers two weeks before China’s National Day Holiday on Oct. 1-7.  

Low operating rates at battery producers were also behind the tight supply. Motive battery sector will enter off-season in October and many industrial insiders are pessimistic over market outlook. As such, some battery makers intend to lower production. 

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