Lead Demand May not be Weak despite Off-season thanks to Chinese Policies

SHANGHAI, Mar 15 (SMM) –The monthly average operating rate of lead-acid batteries may continue to rise slightly in March due to the off-season and more days of production. Policy supports for the automobile industry are expected to offset the negative impact from the traditional off-season. Demand may not be weak.

Since the introduction of the new national standard for electric bicycles in 2018, some provinces and cities have entered the phase-out period of electric vehicles exceeding the standard in 2022. The elimination of vehicles exceeding the standard will continue in 2023. As the phases of elimination vary across different regions, its boost to consumption of electric bicycle batteries has remained.

On March 3, Hubei province and Dongfeng Motor Group initiated the Strongest Car Buying Season in History, followed by Shanghai, Zhejiang, Henan, Sichuan, Heilongjiang, Shanxi, Yunnan, Hainan and Guizhou which have issued relevant policies to promote automobile consumption. Some automotive battery companies may continue to take brisk orders in March and April thanks to the policy stimulus.