In recent days, leading lead acid battery companies across the country have put out notices to stop taking orders and raising their prices, due to the fact that the most important raw material of lead acid batteries, called 'lead, ' has risen so fast The manufacturer couldn't handle the pressure. The Lead acid battery is also an essential component of the car, and the battery issue could also affect the operations of the auto industry.

How bad is the lead price?

 So how much has lead gone up, after all? Let's start at the end of 2015, when the price of lead plummeted to a multiyear low of 12,000 tonnes, before soaring into 2016. In August, lead was trading at 13,500 tonnes, but the futures movement at the time suggested that lead was the only Non-ferrous metal product that was on the rise. By mid-november, lead prices across the country were above 17,000 a tonne (above) and 18,500 a tonne in some places, up more than 50 per cent from the end of 2015.

Massive cutback in mine production

  Lead prices have risen so quickly behind the inevitable multiple factors, on the one hand is based on improved demand, on the other hand is more driven by money speculation. With the domestic monetary policy more and more loose, coupled with domestic and foreign lead and zinc mines large-scale production reduction, so that the lead price itself has a significant rebound in space.

The G20 has led to the shutdown of a number of battery companies

 According to incomplete statistics, as many as 363 battery production enterprises in Zhejiang. In August and September of this year, in order to ensure that Hangzhou's environment will not be affected during the G20 summit, orders were issued to stop operations of high energy consumption and high pollution enterprises in the vicinity of Hangzhou, including most of the companies that make batteries. This large-scale production of the battery on the market has caused a great impact on the reserve.

Winter is the peak season for battery sales

 In addition, it is now winter, the car battery activity will be greatly reduced, the battery has been used for many years due to insufficient voltage will lead to a large number of cars can not start, the increasing number of users this period is normal. Battery capacity has been limited and then met the demand season, battery price has become an inevitable trend.

The impact of Non-ferrous metal price increases on new energy vehicles

 While new energy vehicles also need lead acid batteries to power their body electronics, demand is much lower than for power cells. Current Automobile Power Battery Divides into two kinds roughly: 1. Lithium iron phosphate battery using lithium carbonate and lithium dihydrogen phosphate as raw materials; 2. Nickel-cobalt-manganese-NCM and nickel-cobalt-aluminum ternary lithium battery. Demand for both batteries is high, and a similar price rise could have a big impact on the Non-ferrous metal industry.