SHANGHAI, Jul 19 (SMM) – Chinese lead-acid battery producers remained in low gear this week, even as distributors stepped up procurement after producers of batteries for electric bikes hiked their offers.
The average operating rate across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei, and Hebei provinces changed little from the previous week, and stood at 48.13% in the week to Friday July 19.
As distributors bought on the rally in prices of both batteries and lead, cargoes moved from producers to distributors and inventories at some distributors exceeded a month.
End-market consumption, however, failed to improve, which deterred producers from recovering output.
Several small battery producers in the south-west, who were not included in the calculations for the average operating rate, resumed from break of late, as inventory pressure abated after previous production suspension.
Poor demand for batteries in automobiles drove some producers to slash output or close for breaks.