Japanese Used Battery Export to Korea Halves in September

Japanese export of used automotive lead battery to South Korea significantrly decreased in September. The export decreased by 56.9% to 2,114 tonnes from a year earlier, according to thy Ministry of Finance. The volume was lower than the current bottom of 2,194 tonnes in January 2010 and marked the lowest since August 2008. The volume was much lower than monthly average of 4,074 tonnes for January-August 2011.

Lead market price at London Metal Exchange (LME) temporarily hit below US$ 2,000 per tonne in late September. Monthly average of LME lead price was US$ 2,405 in August, down by 10% from July. Export price of Japanese used automotive lead battery is usually set along LME lead price average of the previous month. Thus, in September, used battery sales to scrap dealers decreased in September.

Japanese secondary lead refineries are suffered from 50-60% operation due to low scrap generation in the market. One refinery said used battery sales obviously decreased from independent gas stations, car dismantler and repairing factories when lead market price dropped down.