Poor demand limits rebound in operating rate across lead-acid battery producers

Published: Jan 14, 2019 11:31

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Rates at lead-acid battery plants across Jiangsu, Zhejiang, Jiangxi, Hubei, Hebei averaged 62.07% in the week ended Jan 11

SHANGHAI, Jan 14 (SMM) – Operating rates at lead-acid battery producers across provinces of Jiangsu, Zhejiang, Jiangxi, Hubei, and Hebei rallied by 2.53 percentage points week on week, and averaged 62.07% in the week through January 11, SMM data showed.

More working days last week after the New Year's Day holiday accounted for the pick-up in operating rates, but quiet downstream purchases kept the rebound smaller than expected.

Poorer export orders for auto batteries ahead of CNY continued to weigh on production at some lead-acid battery producers. The rate across battery plants in Jiangxi extended its decline by 0.17 percentage point on the week, to 55.08% as of January 11.

Lead-acid battery producers across provinces plan to begin CNY breaks in the last 10 days of January, which is expected to further lower operating rates, SMM research found.

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.

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