Japan Lead Smelters in Tough Material Price Competition with Korea

Market price of used lead battery is edging upward in Japan, which is utilized as electrode material for automotive battery. The main reason is upsurge of electrolytic lead market price. Meanwhile, a secondary lead refiner around Tokyo pointed out used lead battery price is pushed up by severe price competition between domestic users and South Korean importers.

Japanese lead smelters and refiners currently purchase used lead battery at 65-70 yen per kilogram. Some smelters offer above 70 yen.

Mitsubishi Materials’ electrolytic lead selling price, the domestic indicator, has risen to 277,000 yen per tonne from 228,000 yen of recent bottom in late November. Domestic shipment of automotive battery is steady due to hot summer and cold winter. Market demand is strong for battery materials.

Meanwhile, one secondary lead refiner said another background is that South Korean importers aggressively offer high prices for Japanese used lead battery. Japanese export unit price of used lead battery was 67 yen per kg in October and 66 yen in November, according to the trade statistics by Ministry of Finance. The refiner pointed out they cannot secure enough materials at below 70 yen under severe price competition with offshore importers.

Many secondary lead refiners are suffered from low profitability due to high material cost. Secondary lead refiners recently set their ingot selling price unchanged against battery makers. However, one refiner said they should become to restart price hike offers if their profitability continues to worsen.