Japan Makers to Hike Replacement Battery by 10-30%

Japanese replacement battery makers try to increase the selling price to cover higher cost for lead. Furukawa Battery announced maximum 30% hike and GS Yuasa announced more than 25% hike effective on December 1. They already realized hike for August and September. The third hike in a year is the first time for the industry. Furukawa Battery announced on November 1 the firm increases the automobile lead battery price by 10-30%. GS Yuasa announced on Monday the firm increases the price for automobile and motorcycle. Shin-Kobe Electric Machinery and Panasonic Storage Battery are likely to follow the move. They tried to increase the price in February-March but the attempt apparently failed due to slow demand under warmer winter. They announced more than 20% hike in August and September to cover higher lead price. Lead price exceeded US$ 3,000 per tonne at London Metal Exchange after they announced second hike. The LME price is around US$ 3,700, which is around 30% higher than the level of the second hike. Japanese lead supply gets tighter toward demand season. Strong offshore demand for Japanese waste battery limits the domestic lead ingot production with waste battery. Japanese battery makers change the selling price of battery for new vehicle through lead price linked mechanism while they sell the replacement battery with fixed price. The replacement battery reduces the battery makers’ profitability due to competition with import and higher cost for lead.