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LME lead price are higher than $2,600/t, hitting the highs since July 2011, but some used lead-acid battery prices show downward trends after hitting the high last year.

A buyer of used lead-acid battery in primary lead smelter said, “Used lead-acid battery inventory levels in primary smelters are at significant high level, so they will lower the purchasing price. In fact, some purchasing prices have dropped and been lower than those of secondary smelters, but we have succeeded in purchasing the material. We are trying to continue lowering the purchasing price further as we have a financial closing at the end of March.”

The company’s inventory is full with 4,000 tons of used lead-acid battery. And, its purchasing price for auto battery is around JPY110/kilo or JPY115/kilo at most. On the other hand, the purchasing prices of secondary smelters are around JPY120/kilo and those of exporters to Korea are around JPY125/kilo at the highest.

Inventory levels in secondary smelters are not so high that their purchasing prices remain firm. Considering that the “export frame” might lose in future, exporters to Korea are shifting to sell the materials to domestic smelters, especially to primary smelters rather than secondary smelters. So, the inventory levels in primary smelters are getting high and they need to lower the inventory level for the financial closing. That’s why they are trying to lower the purchasing prices.

The used lead-acid battery buyer above said, “We’d like to seek to lower to JPY110/kilo at least”.

As to the exports to Korea, more exporters have already used up its export frame in last December or this month. The exports to Korea are expected to reduce.

Currently, those exporters who have already ended up its export frame are actively approaching to domestic lead smelters seeking for regular customers."

(Edited by Sasaki)

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