SHANGHAI, Feb 21 (SMM) – SMM expects operating rates of lead-acid battery plants to extend their decline by some 15 percentage points month on month in February, affected by holiday closures.
Battery plants closed for at least a week for CNY, and some shut for up to a month from January 20 to February 20, SMM learned. This lowered the number of average working days across producers in February below 20.
In January, operating rates dipped 8.55 percentage points on the month, to 64.27%. Producers suspended for up to three days for New Year’s Day, and mostly closed from January 26 ahead of CNY.
Weak prices of lead before CNY depressed restocking enthusiasm across distributors. This, coupled with battery producers’ caution over downstream consumption after holiday, drove them to operate in lower gears or start breaks earlier than usual in January.
Tepid demand from downstream auto, electric bicycles battery markets during CNY, together with lower prices of lead after holiday grew caution across lead-acid battery producers.
SMM learned that some large producers resumed 50-60% of capacity from February 10, while most medium-sized and small producers returned in the second week after CNY.
