SHANGHAI, Oct 18 (SMM) – Operating rates across China’s lead-acid battery producers failed to extend their increase this week as high consumption season ends.
An SMM survey showed that operating rates across lead-acid battery producers in Jiangsu, Zhejiang, Jiangxi, Hubei, and Hebei provinces averaged 56.98% in the week ending October 18, down 0.86 percentage point from the prior week, after the rate rose 0.48 percentage point during October 8-11.
Consumption of electric bicycle batteries softened after the National Day holiday and triggered sales promotion in the wholesale market. Distributors lowered offers by 10-20 yuan/set, with some cut prices as early as over the holiday period.
Rectifications on e-bike license system in Fujian, Chongqing, and Hubei depressed purchases, with the negative impact spreading to the battery industry. Production of e-bike batteries tightened up especially in Zhejiang and Jiangxi provinces where most domestic e-bike battery mills are located.
SMM expects more battery producers to further cut production next week if orders from the e-bike market further weaken.
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