Japanese Secondary Lead Makers Suffered from High Used Battery Cost

Some of Japanese battery makers are reviewing their terms and conditions to purchase secondary lead ingot, when secondary lead smelters are suffered from very low profitability due to cost expansion for used batteries.

Battery makers decide their purchasing price of secondary lead ingot with an indicator such as lead price at London Metal Exchange (LME). Secondary lead smelters set their purchasing price of used battery to reflect battery makers’ price.

Used battery market price has surged since the beginning of this year, stimulated by strong export for South Korea. Secondary lead smelters have asked battery makers for improvement of purchasing terms and conditions.

In October, some of battery makers revised their terms, for instance, paying the premium. Battery makers are approving the actual price hike for stable material procurement before the yearly demand season of winter.

However, secondary lead smelters are still under severe profitability. Used battery market price is currently resurging due to strong demand before the demand season and steady LME price.

Secondary lead smelters’ purchasing price for used battery is around 55-60 yen per kilogram, up by about 20% from early October. A large smelter source around Tokyo said they need to pay 60-65 yen sometimes for a large lot or some scrap dealers offer near 70 yen.