Operating rates of lead-acid battery plants to dip in Nov

Published: Nov 16, 2018 17:34

Save

In Oct, the rates jumped 2.61 percentage points as producers stepped up operation to fulfil backlogged orders

SHANGHAI, Nov 16 (SMM) – SMM expects operating rates of lead-acid battery plants to dip 1-2 percentage points month on month in November. Rates will vary between small-, medium-sized plants and top brand producers. While weaker demand lowered operating rates across small and medium mills, purchases from distributors kept leading battery producers operating at highs. These distributors had annual sales targets to meet.

In October, operating rates jumped 2.61 percentage points on the month as producers stepped up operation during the week-long National Day holiday to fulfil backlogged orders for September. As distributors stockpiled in September, equipment issues and labour shortages at some battery mills resulted in unfulfilled orders.

Slower demand was seen in the downstream electric bicycle and automobile sectors in October, and this capped the month-on-month growth of operating rates.

On a yearly basis, the rate surged 10.53 percentage from a low base in October 2017.

In October 2017, lower prices of lead grew market pessimism and deterred distributors from purchasing. This lowered orders across lead-acid battery plants. The average price of SMM #1 lead plunged from a year-high of 21,850 yuan/mt at the start of October to 18,625 yuan/mt at the end of the month.

As the traditional low season set in during October last year, operating rates fell across lead-acid battery producers. Those producers cut production sharply or closed for 10-20 days. The market mainly depleted inventories at distributors, who stockpiled in a rising market in September 2017.

Operating rates Lead-acid battery

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Tianjin Sabo Recalls 100 E-Bikes Over Safety Concerns

[Lead-Acid Battery End-Use Market Update] Recently, in accordance with the requirements of the Interim Provisions on the Administration of Consumer Product Recalls, Tianjin Sabo Vehicle Co., Ltd. voluntarily submitted a recall plan to the Tianjin Municipal Administration for Market Regulation and will recall, effective immediately, 100 units of the Jiebao Da Wangpai model TDT200Z e-bikes manufactured during the period up to December 31, 2023.

1 hour ago

Dragged Down by Broad Losses in Base Metals, Lead Prices Closed Lower Intraday [Lead Futures Brief Review]

1 hour ago

Chilwee Group Reports Strong Sales of Sodium-Ion Batteries, Expands Production and Opens First Store

[Lead-Acid Battery Enterprise Updates] Chilwee Group recently disclosed that after the large-scale commissioning of its sodium-ion batteries, they have continued to sell strongly, with all orders for this year already locked in. Its two existing production lines have been operating at full capacity, and eight additional production lines have entered the installation and commissioning stage. At present, the company has 4.5 Gwh of sodium-ion battery capacity and opened its first directly operated sodium-ion battery store in 2025, attempting to directly encourage end-use consumers to replace the lead-acid or lithium batteries in some two-wheeler models with sodium-ion batteries.

1 hour ago