What are the reasons for the decline in the value of lead-acid batteries in detail?
by:Vglory 2021-04-17
Reasons for the decline in the value of lead-acid batteries The value of lead-acid batteries has fallen sharply recently, dropping by more than 10% in just one month, and the value of accepting lead has also fallen all the way, which makes dealers happy. Some worries, it seems that the value of lead-acid batteries has returned to the original point. Many dealers are very suspicious, after all, can they stock up? After the two sessions, the imprisonment of manufacturing the plates was relaxed. Everyone knows each other. From last year to the two sessions, leaders from everywhere in the central government have attached great importance to environmental protection, and polluting industries such as chemical industry and metal smelting have been severely imprisoned. Last year’s lead-acid batteries have risen one after another. In addition to the rising lead price, the limited production of plates is an important driving force. The superposition of the two forces has caused the market to feel that demand exceeds supply. However, after the NPC and CPPCC, the restraint must be loosened at a certain level, which provided an opportunity for the manufacture of plates to expand production. Therefore, the recent decline in the value of lead-acid batteries is inseparable from the relaxation of imprisonment. Many companies have enlarged their output and have formed an oversupply. As far as possible, the two giants control over 70% of the market share, but under the strict environmental protection restrictions, the rewards they face are communicated, which leaves a big gap in the battery market. As a result, those battery companies with inevitable limitations have increased their horsepower to increase production to compensate for the losses caused by previous imprisonment. After the environmental protection restrictions were relaxed, almost all battery companies were increasing production, which caused the market's demand for lead-acid batteries to shift from oversupply to oversupply. The expectation factor that the market buys up and does not buy down is dispatched. Under the imbalance of oversupply of lead-acid batteries, it will form a trend of decline, thus creating a wait-and-see atmosphere for the market. Therefore, many dealers have been waiting for the decline in the value of batteries in the recent period. In fact, the total market demand for electric vehicles has not been eliminated. 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 an environment where market demand has not been eliminated, excess supply and falling lead prices are important reasons for the decline in the value of lead-acid batteries during this period. Disclaimer: Some pictures and content of articles published on this site are from the Internet. If there is any infringement, please contact to delete.
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