Lead-acid battery makers operation slowed further as COVID-19 took its toll

Published: Apr 10, 2020 17:03 (GMT+8)

Save

Operating rates across Chinese lead-acid battery plants continued to decline this week, as global lockdowns amid Covid-19 have led to the cancellation of export orders and disrupted deliveries.

SHANGHAI, Apr 10 (SMM) – Operating rates across Chinese lead-acid battery plants continued to decline this week, as global lockdowns amid Covid-19 have led to the cancellation of export orders and disrupted deliveries.

Finished goods inventory accumulation in the wake of weaker-than-expected back-to-school season consumption also forced lead-acid battery producers to scale back operations after entering a low season for electric bike batteries.

An SMM survey showed that operating rate across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei and Hebei provinces averaged 63.47% in the week ended April 10, down 1.56 percentage points from last week. The decline was larger than a 0.2 percentage point dip in the prior week.

Operating rate Lead 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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

47 mins ago

Holiday Slows Secondary Lead Market, Fewer Sellers and Quiet Transactions

[Secondary Lead Market Dynamics] With the holiday approaching, the number of sellers quoting and shipping goods decreased significantly this week. Spot orders were traded at discounts of 100-0 yuan/mt against the SMM #1 lead average price, with a small volume traded at premiums of 30-50 yuan/mt against the SMM #1 lead average price. Downstream enterprises slowed down their purchasing, and transactions turned quiet. Scrap battery prices remained stable during the week, with smelters' profit and loss levels showing relatively small changes WoW.

47 mins ago

48 mins ago

SMM Crude Lead CIF Price at Discount; New Import Transactions Decline

[Secondary Lead Market Dynamics] As of this Friday, the SMM crude lead CIF price (including 0.1-0.35 Sb, 0.1-0.25 Sn) was at a discount of 300-150 yuan/mt against the SMM #1 lead average price. During the week, new import crude lead transactions shrank, with only a small number of orders for late August and early September arrivals. After the holiday, previously concluded orders will arrive at ports in a concentrated manner.

48 mins ago

49 mins ago

Secondary Lead Inventories Drop 330 mt MoM, Transactions Slow Amid Pre-Holiday Subdued Demand

[Secondary Lead Market Dynamics] As of September 30, secondary lead finished product inventories stood at 7,700 mt, down 330 mt MoM. Pre-holiday stockpiling largely concluded this week, downstream purchasing sentiment turned subdued, and transactions pulled back WoW. Meanwhile, secondary lead suppliers faced tight spot order availability, with some merchants taking early leave and suspending quotes and sales, slowing the pace of inventory decline.

49 mins ago