Operating rates at lead-acid battery makers fell as demand remained weak

SHANGHAI, Jun 5 (SMM) – Operating rate across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei and Hebei provinces edged lower by 0.07 percentage point from a week ago to 63.6% in the week ended June 5, after remaining unchanged during the past two weeks, showed an SMM survey.

End-users consumption of lead-acid batteries remained subdued, which kept distributors from restocking. Elevated inventories drove some companies to cut their monthly output. However, some large-scale battery producers continued to operate at a high rate as they had not achieved their mid-year production targets. This partially offset the overall decline in operating rates and led to only a slight drop in the average rate this week.

Following a rally in lead prices at the start of the week, some lead-acid battery producers continued to consume their remaining raw materials stockpiles and withheld from purchasing as their finished products stocks stayed at high levels and weakened battery prices in a slow season lifted their production costs.