From the end of July to the beginning of August this year, the price of lead began to accelerate upward. In just half a month, it quickly jumped from 18,000 yuan/ton to 20,000 yuan/ton. The price of downstream lead-acid batteries also rose. What are the factors that lead prices to rise, and what are the impacts on downstream lead-acid batteries?

From a longer-term perspective, lead prices have been in an upward channel for nearly a year, and from a recent perspective, the wave of increases since May 18 can be roughly regarded as the third stage of this longer cycle.

During this period, from the end of July to the beginning of August, the price of lead began to accelerate upward. In just half a month, it quickly jumped from 18,000 yuan/ton to 20,000 yuan/ton. The price of downstream lead-acid batteries also rose. What are the factors that lead to the rise in lead prices, and what are the impacts on downstream lead-acid batteries?

Factors that caused the sharp rise in lead prices

1. The fourth round of environmental protection supervision has been launched recently. The recycled lead industry has been affected by the environmental protection supervision. The three-no refineries have basically been shut down, and the production capacity has been greatly reduced, resulting in a tight supply of market goods.

2. From late July to early August, production was limited by high temperature weather.

3. Glencore, an international mining giant, recently lowered its annual lead production plan by 5%.

4. The grade of lead ore has declined.

5. According to data released by the World Bureau of Metal Statistics (WBMS) on August 16, the global zinc market had a supply shortage of 370,000 tons from January to June 2017, and a supply shortage of 223,000 tons in 2016. From January to June 2017, the global lead market had a supply shortage of 195,000 tons, and a supply shortage of 172,000 tons in 2016.

Lead-acid battery prices rise with lead prices

Although the lead-acid battery industry is currently in the traditional peak season for consumption, the pressure from cost and environmental protection still makes major recycling and manufacturing companies suffer.

On August 11, as the state officially launched the environmental protection inspection in Zhejiang Province, in addition to the three-no small factories that were almost completely shut down, some qualified large enterprises were also not spared. Almost more than 90% of the industry's production enterprises were ordered to increase production and rectify.

Among them, Changxing area in Zhejiang accounts for about 60% of the country's lead-acid battery production capacity.

It is understood that at the press conference held by the State Council Information Office on June 3, Li Ganjie, Vice Minister of the Ministry of Environmental Protection, said that the most severe means will be used to comprehensively regulate the lead-acid battery industry and the recycled lead industry, and strive to curb the frequent occurrence of lead pollution accidents.

At the same time, the continuous rise in lead prices has gradually pushed up the production cost of lead-acid batteries, and lead-acid batteries have also followed the price increase. Lead-acid batteries, in the DC power supply system, occupy a large cost, which will inevitably lead to the adjustment of the power supply system price. If you are in urgent need, then what are you waiting for?

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