Mid-year targets to lift operating rates across lead-acid battery mills in May

SHANGHAI, May 16 (SMM) – SMM expects operating rates across producers of lead-acid batteries to gain 1 percentage point on the month in May as large battery mills step up production to meet mid-year targets.

However, a seasonal lull will keep most battery plants producing on orders, with their planned output flat from that in April. Overall sluggish consumption will cap the rebound in the operating rates for May. 

The average operating rate across 51 producers of lead-acid batteries lost more than expected, by 4.31 percentage points from March, standing at 60.35% in April, up 1.67 percentage points on the year, an SMM survey showed.

Last month, battery distributors held back from purchasing as a traditional slow season set in and prices of lead slid. This dragged on orders across battery producers and slowed operations. 

New national standards for electric bicycles that advocated the mass production of lightweight lead-acid batteries, weighed on lead consumption. SMM learned that the weight of the basic model 48v20Ah declined about 0.4kg per unit. A ban on sales of substandard e-bikes slowed the depletion of battery stocks at distributors and grew inventory pressure across battery producers. This also accounted for the lower operating rates in April.  

In April, battery producers closed for up to seven days for the Qingming Festival and before the Labour Day holiday, SMM learned.