SHANGHAI, Jul 6 (SMM) – The operating rate at lead-acid battery plants across China came in at 59.43% in June, down 9.01 percentage points month on month and 11.24 percentage points year on year as wide-ranging environmental probes limited production at some plants, SMM research found.

In June, inspectors from the central government settled in Jiangxi, Anhui, Jiangsu and Henan provinces to review the rectification works for previous environmental issues. The greatest impact of environmental inspections was felt in Jiangxi, as some plants across the region suspended for a month.

A seasonal lull also affected domestic orders. Export orders performed no better as SHFE prices exceeded LME prices.

SMM expects the rate to rise in July as the market heads into the traditional high season and as the environmental probes end.