Lead-Acid Battery Plants May Soon Step into the Off Season

SHANGHAI, Mar 16 (SMM) - Capacity utilisation rates at lead-acid battery producers fell 11.6 percentage points on the month and 2.04 percentage points on the year to 57.22% in February, according to an SMM survey that covered a monthly capacity of 14.19 million kVAh. The sample involves 50 enterprises with total monthly capacity of 24.79 million kVAh.

In early February, most lead-acid battery plants were still in the CNY holiday or just resumed the production. The operating rates dropped. Most enterprises resumed the production during February 6-10, and other smelters resumed the operation during February 12-15. The operating rates of the producers in east and south China were lower than expected at the beginning of production resumption, as the non-local workers were late in returning to factory. The resumption was accelerated in late February.

The producers have basically resumed normal production in March, and there are 31 working days in the month. As such, the overall operating rates of lead-acid battery plants may rise by 10-15 percentage points. The lead-acid battery market will enter the traditional off season from March to May, and the market has seen sales promotions recently. If the orders continue to decline, the battery companies may lower the operating rates. Therefore, SMM estimates that the operating rates to rise by 10%.