Seasonal lull continues to lower operating rates across lead-acid battery mills

SHANGHAI, Jul 5 (SMM) – Lead-acid battery producers in China again slowed their operations this week as a seasonal lull in downstream consumption intensified. 

The average operating rate across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei, and Hebei provinces lost 0.48 percentage point from the previous week to stand at 47.52% in the week to Friday July 5, after the rate held unchanged last week. 

Major producers of electric bicycle batteries expanded sales promotion, but weak lead prices kept distributors cautious about purchasing. Inventory depletion across battery mils, especially second- and third- class brand manufactures, remained slow. 

Trades of automobile batteries also showed little signs of pickup as distributors purchased on demand and suspension of some carmakers dragged on orders for batteries. 

High inventories drove a number of battery producers in the north and south-west to cut production by 10-15% since the start of July, or to take breaks of up to 10 days. 

SMM expects the actual operating rates across Chinese battery producers to be even lower as the SMM survey does not include all producers in the south-west.