The average capacity utilisation rate of lead-acid battery producers stood at 75.55% in March, up 26.79 percentage points on the month and 3.32 percentage points on the year, according to SMM survey. Output was 23.1523 million KVAh. (The survey covered 46 producers with the total monthly capacity of 30.64 million KVAh).
According to the survey, the impact of the CNY holiday dissipated in March, and March has 31 calendar days, meaning more production days. After the holiday, battery dealers for electric bicycles, cars, etc. generally replenished their stocks. Orders of especially first- and second-tier brands were brisk, and some companies reached full capacity. Meanwhile, the giant companies' newly-commissioned production capacity was ramped up.
In mid-to-late March, consumption in the bicycle and automobile battery markets began to weaken. Dealers concerned about the subsequent price drops of batteries in April and May controlled battery inventory. That reduced orders at some companies. In addition, some companies closed for up to three days in April due to the Qingming Festival. Against the weakening consumption, manufacturers have been launching sales promotions for batteries to stimulate purchases by dealers and ease some of the impact of the off-season on production. It is estimated that the average operating rate of lead-acid battery companies will decline by about 3 percentage points in April.
