SMM January 6 Automotive Battery Market Summary [SMM Evening Briefing]

SMM January 6 News: Dealers in Hubei reported moderate end-use consumption in the automotive battery market. Due to year-end sales promotions by manufacturers, current battery inventory is nearly two months. Although lead prices held up well recently, wholesale battery prices struggled to catch up. For example, the wholesale price of the main model 6-QW-60Ah was 250-280 yuan per unit. Manufacturers in Zhejiang indicated that the automotive battery market is in the traditional peak season, with domestic finished product orders stable with a slight increase. However, exports are still constrained by factors such as the price spread between domestic and overseas markets. Currently, the operating rate of factories is maintained around 80%. Manufacturers in Guangdong reported relatively improved replacement demand in the automotive battery market, but export orders are weak. Additionally, with the Middle East tariff expected to be implemented in mid-January, overseas orders may decline further. The current operating rate of factories is 70-80%.