The competition of Lead acid battery subdivision market is fierce , scale advantage is the key

Lead acid battery subdivision market competition is fierce, scale advantage is the key. The domestic lead-acid battery market is relatively concentrated, and the chemically-powered lead-acid battery production industry is more competitive. The competition of product prices and the increase of cost have greatly reduced the net profit margin of major manufacturers in the industry. With the increasing demands of residents on battery performance, the increasing emphasis on environmental protection by the state, and the increasing threshold for entry into the industry, enterprises with advantages in scale within the industry will have more opportunities for development, and they will be able to further expand their scale through production expansion and mergers and acquisitions. Industry concentration will increase.

Upstream high-end battery manufacturers have strong bargaining power. The upstream of the lead-acid battery industry includes lead, sulfuric acid, and plastics. The lead-acid battery industry has a large demand for raw materials. The lead and sulfuric acid industries as a whole have excess capacity, and battery manufacturing is an important downstream application area of lead. Thus the lead-acid battery industry has a strong bargaining power for lead and sulfuric acid. Plastics are in short supply, and the battery industry has higher requirements for the characteristics of plastics, so the plastics industry has lower bargaining power. The upstream of lead-acid batteries is mainly raw materials and other industries, which are greatly affected by price fluctuations.

Upstream raw materials are affected by environmental protection policies, and prices fluctuate greatly, which has a significant impact on the cost of the battery industry. The upstream of traders is the lead smelting industry. Since lead and lead calcium alloys account for most of the cost of lead-acid batteries, the lead smelting industry has a greater impact on enterprises. At present, there are more lead smelters in China and the competition is fierce. With the increase of domestic environmental protection pressure and the improvement of product quality requirements, the survival space of the technologically backward small and medium-sized smelters will be further reduced, and the combined reorganization will further increase the concentration of the lead smelting industry. In order to reduce the impact of raw material price fluctuations on the profitability of the industry, companies will generally establish a lead price linkage mechanism with customers on the sales price of products.

Lead Acid Battery Raw Materials 2015-2018: The Price Trend of Lead

Downstream demand pull industry upgrade, lead-acid battery industry barriers appear, high-end battery bargaining ability. In recent years, the lead-acid battery industry in China has maintained a high profit margin with the downstream demand, which has a strong attraction to potential entrants. At the same time, the state has issued a series of relevant policies for standardized industries, raising the threshold for entry into the industry, and industry barriers have emerged. The downstream industries are mainly automobiles, electric vehicles, communications, and new energy sources. At present, the bargaining power of the lead-acid battery industry is generally low, but the manufacturing enterprises of high-end lead-acid battery products have relatively high bargaining power.

Forecast of global lead-acid battery market size

Car start and stop battery gross profit rate high high-tech barriers. Due to the more frequent start-up and power supply requirements for vehicle-mounted appliances during idling, the start-up and shutdown batteries have higher requirements than ordinary starter batteries. By 2018, the battery penetration rate will reach 50 %, about 13.5 million units; By 2020, the penetration rate will reach 70 %, the shipment volume will be about 21 million units, and the output value will be 14 billion yuan; The period from 2015 to 2018 is the golden growth period for Chinese cars to stop batteries, with an annual compound growth rate of 46 %.

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