Faced with the three factors of cost reduction, increase in selling price, and gap in market supply, orders for leading domestic lead-acid battery companies after industry reshuffle have soared, and production arrangements have been running at full capacity.
Lead-battery industry access conditions are nearing the introduction, and some people are happy to see that for those lead-acid battery companies whose "health check" results are not up to standard, the outcome will only fall out of favor; for companies that have benefited from market dominance after industry rectification, At this moment, it is the time for them to expand.
"Green revolution" will cause half of companies to go out
According to reports, the Ministry of Industry and Information Technology had already concluded its request for comments on the "admission requirements for lead-acid storage battery industry" (hereinafter referred to as "conditions") and had already submitted it to the Ministry of Environmental Protection. If the dispute is not great, it will be issued within the fastest month. Another industry source who knows the inside story also revealed that the current entry conditions have entered the final stage and are only waiting for release. The time is before November.
A few months ago, the Ministry of Industry and Information Technology commissioned the lead-acid battery branch of the China Electrical Appliance Industry Association to begin drafting. Informed sources revealed that the establishment of "conditions" is mainly to curb blind investment, low-level redundant construction, eliminate backward production capacity, strengthen pollution control, and promote structural adjustment and optimization of the lead-acid battery industry. The frequent incidents of excessive blood lead in Zhejiang, Guangdong and Other places this year have aroused strong concern for the lead battery industry. The reason is that some SMEs do not invest enough in environmental protection equipment to save costs.
According to Yang Chunming, vice president of the Lead and Zinc Branch of the China Non-Ferrous Metals Industry Association, a small workshop with a total cost of less than RMB 100,000 will be profitable only by manual dismantling and simple melting furnaces for the recovery and production of lead-acid batteries. . Due to the blooming of similar small workshops, it has greatly increased the difficulty of supervision.
The government began to show unprecedented zero tolerance to the public health problems caused by lead pollution. The environmental protection department took the lead and a “finding and rectification campaign†for the lead battery industry swept across the country and continued for many months. According to statistics, since the domestic environmental protection surge in the lead storage battery industry began in May this year, 1,700 companies with business licenses have only survived about 30% of the total, and there are about 500.
As one of the remediation "combinations", the draft of the "Conditions" put forward clear requirements for new projects from the aspects of total control, industrial layout, technical equipment, environmental protection, and safety and occupational health. For example, the new production capacity should be replaced with the phase-out capacity plus the market increment. The site for the new construction project “should be in the corresponding functional area of ​​the industrial park approved for establishment†and so on.
For existing enterprises, the "conditions" require that they should obtain production licenses, safety production licenses, discharge permits, and post-environmental impact environmental assessments in accordance with the law, and require that they use automatic acid distribution, automatic distribution, brushing, and Advanced technologies such as automatic welding or automatic casting and welding, as well as the internalization of energy-saving and emission-reduction technologies should be adopted for the reconstruction and expansion of existing projects.
Informed sources disclosed that in order to meet relevant requirements, a lead-acid battery company must invest at least 5 million yuan in technological transformation funds, and some enterprises that do not meet the standards can only exit the market. After the entry conditions are expected to be issued, the survivors will also drop one batch. According to Hu Xinguo, executive director of the China Battery Industry Association, one of the participants of the "Conditions", according to the forthcoming "Entry Conditions" of the Ministry of Industry and Information Technology, half of the industry's backward production capacity will be eliminated in the next three years. Ultimately, the total amount of lead battery enterprises nationwide is not There will be more than 500 homes.
Surviving is victory
However, the industry reshuffle seems to be a boon for the dominant companies in the industry.
According to monitoring, the transaction price of 1# lead on the domestic spot market has dropped from the highest of 17,750 yuan/ton in early April to 15,100 yuan/ton on October 26. Among them, the reduction in downstream demand is one of the important reasons for suppressing the downward price of lead, while 70% of the refined lead is used for lead battery production. Based on this rough calculation, the cost of purchasing lead by lead storage battery companies fell by 3,000 yuan/ton in the past six months.
At the same time as the cost dropped, there was a gap in the supply of lead-acid batteries, and the situation of supply shortage began to appear.
A previous research report by CITIC Securities showed that after the industry was rectified, the supply gap for electric bicycle batteries was about 40%, and the battery gap for automobile start-ups was also 20%. Due to the shortage of supply, the price of electric bicycle battery terminals has increased from 400 yuan/group to more than 700 yuan/group. With the further introduction of future access conditions, it is expected that the industry supply gap will remain until mid-2012. "The first few months of the downstream automotive and electric vehicle industries are mainly using inventories of battery companies. The downstream industry has already entered the peak season and the demand is large. Especially the automotive industry and the electric bicycle industry have been greatly affected. Now lead-acid battery production is reduced. As much as 50%, after the rectification, the downstream industry appeared in a situation of "supply exceeds supply," said Xu Hong, secretary general of the Lead-acid Battery Professional Committee of the China Electrotechnical Society.
Affected by the reduction in the supply of lead-acid batteries, the prices of lead-acid batteries in the domestic markets have been increased by more than 70%. The decrease in cost, increase in the selling price, and the gap in market supply have led to an increase in orders for domestic leading lead battery companies after the accumulation of three factors, and the production arrangements have been operating at full capacity.
Insiders said that with the introduction of the "conditions", domestic competitive enterprises will further enjoy the benefits of shuffling. The free market share has to be filled by enterprises, and the setting of the new construction and expansion scale in the access conditions is undoubtedly encouraging the compliance enterprises to continue to expand investment and increase production capacity. At the same time, the increase in industry concentration has also led lead battery manufacturers to begin to have a say in pricing.
However, the person also reminded that leading companies that have expanded their market share should maintain a clear-headed view. Clearly, the profits they enjoy currently benefit from environmental storms to eliminate unqualified competitors, but once they neglect their environmental protection, they will be protected by environmental protection. Storm relentlessly cut off.
Lead-battery industry access conditions are nearing the introduction, and some people are happy to see that for those lead-acid battery companies whose "health check" results are not up to standard, the outcome will only fall out of favor; for companies that have benefited from market dominance after industry rectification, At this moment, it is the time for them to expand.
"Green revolution" will cause half of companies to go out
According to reports, the Ministry of Industry and Information Technology had already concluded its request for comments on the "admission requirements for lead-acid storage battery industry" (hereinafter referred to as "conditions") and had already submitted it to the Ministry of Environmental Protection. If the dispute is not great, it will be issued within the fastest month. Another industry source who knows the inside story also revealed that the current entry conditions have entered the final stage and are only waiting for release. The time is before November.
A few months ago, the Ministry of Industry and Information Technology commissioned the lead-acid battery branch of the China Electrical Appliance Industry Association to begin drafting. Informed sources revealed that the establishment of "conditions" is mainly to curb blind investment, low-level redundant construction, eliminate backward production capacity, strengthen pollution control, and promote structural adjustment and optimization of the lead-acid battery industry. The frequent incidents of excessive blood lead in Zhejiang, Guangdong and Other places this year have aroused strong concern for the lead battery industry. The reason is that some SMEs do not invest enough in environmental protection equipment to save costs.
According to Yang Chunming, vice president of the Lead and Zinc Branch of the China Non-Ferrous Metals Industry Association, a small workshop with a total cost of less than RMB 100,000 will be profitable only by manual dismantling and simple melting furnaces for the recovery and production of lead-acid batteries. . Due to the blooming of similar small workshops, it has greatly increased the difficulty of supervision.
The government began to show unprecedented zero tolerance to the public health problems caused by lead pollution. The environmental protection department took the lead and a “finding and rectification campaign†for the lead battery industry swept across the country and continued for many months. According to statistics, since the domestic environmental protection surge in the lead storage battery industry began in May this year, 1,700 companies with business licenses have only survived about 30% of the total, and there are about 500.
As one of the remediation "combinations", the draft of the "Conditions" put forward clear requirements for new projects from the aspects of total control, industrial layout, technical equipment, environmental protection, and safety and occupational health. For example, the new production capacity should be replaced with the phase-out capacity plus the market increment. The site for the new construction project “should be in the corresponding functional area of ​​the industrial park approved for establishment†and so on.
For existing enterprises, the "conditions" require that they should obtain production licenses, safety production licenses, discharge permits, and post-environmental impact environmental assessments in accordance with the law, and require that they use automatic acid distribution, automatic distribution, brushing, and Advanced technologies such as automatic welding or automatic casting and welding, as well as the internalization of energy-saving and emission-reduction technologies should be adopted for the reconstruction and expansion of existing projects.
Informed sources disclosed that in order to meet relevant requirements, a lead-acid battery company must invest at least 5 million yuan in technological transformation funds, and some enterprises that do not meet the standards can only exit the market. After the entry conditions are expected to be issued, the survivors will also drop one batch. According to Hu Xinguo, executive director of the China Battery Industry Association, one of the participants of the "Conditions", according to the forthcoming "Entry Conditions" of the Ministry of Industry and Information Technology, half of the industry's backward production capacity will be eliminated in the next three years. Ultimately, the total amount of lead battery enterprises nationwide is not There will be more than 500 homes.
Surviving is victory
However, the industry reshuffle seems to be a boon for the dominant companies in the industry.
According to monitoring, the transaction price of 1# lead on the domestic spot market has dropped from the highest of 17,750 yuan/ton in early April to 15,100 yuan/ton on October 26. Among them, the reduction in downstream demand is one of the important reasons for suppressing the downward price of lead, while 70% of the refined lead is used for lead battery production. Based on this rough calculation, the cost of purchasing lead by lead storage battery companies fell by 3,000 yuan/ton in the past six months.
At the same time as the cost dropped, there was a gap in the supply of lead-acid batteries, and the situation of supply shortage began to appear.
A previous research report by CITIC Securities showed that after the industry was rectified, the supply gap for electric bicycle batteries was about 40%, and the battery gap for automobile start-ups was also 20%. Due to the shortage of supply, the price of electric bicycle battery terminals has increased from 400 yuan/group to more than 700 yuan/group. With the further introduction of future access conditions, it is expected that the industry supply gap will remain until mid-2012. "The first few months of the downstream automotive and electric vehicle industries are mainly using inventories of battery companies. The downstream industry has already entered the peak season and the demand is large. Especially the automotive industry and the electric bicycle industry have been greatly affected. Now lead-acid battery production is reduced. As much as 50%, after the rectification, the downstream industry appeared in a situation of "supply exceeds supply," said Xu Hong, secretary general of the Lead-acid Battery Professional Committee of the China Electrotechnical Society.
Affected by the reduction in the supply of lead-acid batteries, the prices of lead-acid batteries in the domestic markets have been increased by more than 70%. The decrease in cost, increase in the selling price, and the gap in market supply have led to an increase in orders for domestic leading lead battery companies after the accumulation of three factors, and the production arrangements have been operating at full capacity.
Insiders said that with the introduction of the "conditions", domestic competitive enterprises will further enjoy the benefits of shuffling. The free market share has to be filled by enterprises, and the setting of the new construction and expansion scale in the access conditions is undoubtedly encouraging the compliance enterprises to continue to expand investment and increase production capacity. At the same time, the increase in industry concentration has also led lead battery manufacturers to begin to have a say in pricing.
However, the person also reminded that leading companies that have expanded their market share should maintain a clear-headed view. Clearly, the profits they enjoy currently benefit from environmental storms to eliminate unqualified competitors, but once they neglect their environmental protection, they will be protected by environmental protection. Storm relentlessly cut off.
BLG Digital Network Co., Ltd. , http://www.gdnetworkcable.com