SHANGAI, Jan 19 (SMM) -
In terms of battery scrap: Prices of battery scrap may be high amid the strong demand after CNY holiday
The battery scrap transactions were muted amid the approaching Chinese New Year. Traders with certain amount of inventory suspended the recycling and delivery and took holidays. More and more smelters stop making quotations for battery scrap this week and most purchasing departments will suspend the procurement since January 21 to January 27 and reopen on January 28. The operating rates of secondary lead smelters may rise rapidly after the CNY holiday if there is no pandemic outbreak, hence the demand for raw material will be strong. As such, the purchasing prices of battery scrap are expected to be high.
In terms of reduced lead: The transactions of reduced lead were deserted this week but the post-holiday purchasing demand may increase significantly
After the logistics services were halted, the quotations of the reduced lead in the spot market dropped significantly and the transactions were muted. According to SMM research, the production of some smelters that have completed the pre-holiday restocking target in the previous week will not be affected by the halted logistics services. These smelters will restock in the form of long-term orders after the CNY holiday and the secondary refined lead and lead alloy they produced will be delivered in the form of long-term orders after the transportation recovers. Most secondary lead and alloy smelters will resume the production as planned around January 29 if the pandemic situation is stable. Therefore, the post-holiday demand for battery scrap and reduced lead will be strong.
