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Analysis of the important reasons for the decline in the price of lead-acid batteries

by:Vglory      2021-04-17
The price of lead-acid batteries has fallen sharply recently. It has fallen by more than 10% in just one month, and the price of recycled lead has also fallen all the way. This makes dealers feel happy and worried, as if they feel lead-acid. The price of the battery feels like it's back to square one. Many dealers are confused, can they stock up? After the NPC and CPPCC, the supervision on the manufacturing of plates was relaxed. As we all know, from last year to the end of the two sessions, leaders from the central and local governments have attached great importance to environmental protection, and polluting industries such as chemical industry and metal smelting are subject to strict supervision. Last year's lead-acid batteries have risen one after another. In addition to the rise in lead prices, the restriction of plate processing is an important driving force. The superposition of the two forces creates a feeling that demand exceeds supply in the market. However, after the two sessions, supervision was loosened to a certain extent, which provided opportunities for manufacturing plates to expand production. Therefore, the recent decline in the price of lead-acid batteries is inseparable from the deregulation. Many companies amplify production and oversupply. Although the two giants control about 70% or more of the market share, they face the same treatment under strict environmental protection supervision, leaving a big gap in the battery market. Therefore, those battery companies with a certain scale have increased their horsepower to increase production in order to make up for the losses caused by the previous supervision. After the relaxation of environmental protection supervision, almost all battery companies are increasing production, which has turned the market's demand for lead-acid batteries from oversupply to oversupply. The market is driven by the wait-and-see factors of buying up and not buying down. Under the imbalance of oversupply of lead-acid batteries, it will form a trend of decline, thus forming a wait-and-see atmosphere for the market. Therefore, with the recent decline in battery prices, many dealers are on the sidelines. In fact, the total market demand for electric vehicles has not decreased. Although electric two-wheelers are declining, electric tricycles and electric four-wheelers are on the rise. After the two are offset, the market's demand for lead-acid batteries still rises slightly. In the absence of a reduction in market demand, oversupply and falling lead prices are important reasons for the decline in the price of lead-acid batteries during this period. Disclaimer: Some pictures and content of the articles published on this site are from the Internet. If there is any infringement, please contact to delete. Previous: Introduction to the use of ceramic separators for lithium batteries
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