Automotive Lead Battery Shipment Keeps Low in Japan

Japanese automotive lead battery makers’ shipment keeps slow. The makers’ domestic sales volume represented year-to-year decrease for 15 straight months until October according to the governmental statistics. Battery sales are stagnant for new cars as well as for replacement use due to warm winter. Japanese battery makers decrease the output by about 30% compared with the peak in 2007, despite of entering demand season of winter. At the same time, battery imports are increasing from South Korea. It is concerned that domestic battery inventory may increase.

Domestic battery sales for four-wheel cars totaled 1.879 million units in October, equal to 14,476 tonnes of lead, according to Ministry of Economy, Trade & Industry. By battery units, the sales represented lower by 20.1% than in October 2007 and by 7.3% than in October 2008. By lead weight, the sales were lower by 23% than in October 2007 and by 9.3% than in October 2008. The sales maintain low though which recovered by 59% from the bottom in May 2009.

Domestic battery production totaled 2.033 million units in October, equal to 15,757 tonnes of lead. The production returned to the level as high as a year earlier but represented lower by 18.9% than the peak in October 2007. Year-to-year decrease continued for 12 straight months. Japanese battery makers have even strengthened the output reduction since November.

Battery import from South Korea was 291,000 units in October, the highest level in 11 months. Korean batteries price are lower than Japanese batteries. Weak won exchange rate against yen also accelerates South Korea’s export. In Japan, supply and demand balance of automotive lead battery is expected to loosen more due to low demand and high import.