The 2024 US presidential election has once again brought Trump to the center of the political stage. If Trump is re-elected, his policies will undoubtedly have a profound impact on China-US trade relations. This article will explore the impact of Trump's policies on China's exports to the US, particularly on the lead-acid battery industry.   Overview of Trump's Policies   Trump has consistently taken a protectionist stance on trade policy. His signature policies include raising tariffs, promoting "America First," and encouraging the return of manufacturing jobs to the US. These policies have significantly impacted China's exports in recent years.   Overall Impact on China's Exports   1. Increased Tariffs: Trump may continue to impose or raise tariffs on Chinese goods, increasing the cost of Chinese products and affecting their competitiveness in the US market.   2. Supply Chain Restructuring: Encouraging "decoupling" from China may lead US companies to seek alternative suppliers, affecting China's export volume.   3. Adjustment of Technical and Environmental Standards: Adjusting environmental regulations and market access standards may require Chinese export products to meet stricter requirements.   4. Stricter Market Access Restrictions: Chinese export products may face more stringent review and certification processes.   Impact of Trump's Policies on the Lead-Acid Battery Industry   For the lead-acid battery industry, Trump's policies may have the following effects:   1. Cost Increase: If the US imposes tariffs on lead-acid batteries, it will directly increase the export costs of Chinese products.   2.Increased Market Access Difficulty: Stricter environmental and safety standards may require Chinese companies to upgrade their technology and products.   3. Supply Chain Adjustment: Changes in US market demand may force Chinese companies to seek new markets or adjust their production layouts.   4. Increased Competitive Pressure: US support for domestic industries may increase the competitive pressure on Chinese lead-acid batteries in the US market.   Conclusion   If Trump is re-elected, his trade policies will continue to significantly impact China's exports. Chinese export companies need to closely monitor policy trends, flexibly adjust their export strategies, and enhance product competitiveness to cope with potential trade frictions and market changes. Particularly for the lead-acid battery industry, companies should prepare in advance to address the dual challenges of rising costs and increased market access difficulties.

view more

  With the introduction of the EU's new battery regulation, Chinese battery manufacturers are facing a series of new challenges. These challenges involve not only production and technology but also data collection, regulatory compliance, and supply chain management. Here is a detailed analysis of these specific challenges:   1. Carbon Footprint Declaration   The new regulation requires battery manufacturers to disclose the carbon footprint of the entire lifecycle of their batteries. This means Chinese battery manufacturers need to collect and calculate carbon emissions data from upstream minerals and materials to battery production, recycling, and reuse. This requires companies to have the necessary data collection and calculation capabilities and to overcome difficulties such as the lack of standardized databases and the absence of international recognition mechanisms. This places higher demands on companies' information management systems, forcing them to invest more in data management and environmental monitoring.   2. Requirements for Battery Material Recycling and Reuse    The new regulation sets proportion requirements for the use of recycled materials in batteries. However, China has not yet established a certification system for the use of recycled raw materials, which will hinder future exports. To comply with EU standards, Chinese battery manufacturers need to accelerate the establishment of a certification system for the use of recycled raw materials and enhance related technical capabilities.   3. Information Disclosure Challenges in the Battery Passport   Starting in 2027, batteries exported to Europe must have a "battery passport" that records information such as the manufacturer, material composition, carbon footprint, and supply chain. This places higher demands on battery companies' information transparency and data-sharing capabilities. Chinese battery manufacturers need to strengthen the construction of information management systems to ensure the accuracy and transparency of information and establish effective data-sharing mechanisms to meet EU requirements.   4. Strict Regulatory Requirements   The new battery regulation sets specific standards for the health status, expected lifespan, and safety of batteries. Chinese battery manufacturers need to ensure their products meet these standards, which may require upgrading their production processes and quality control systems. This process may involve significant technological modifications and investments but also offers an opportunity to enhance product competitiveness and market share.   5. Restrictions on Hazardous Substances   The new battery regulation imposes limits on the content of hazardous substances in batteries. Chinese battery manufacturers need to ensure their battery products comply with these restrictions. This means companies need to strictly manage their supply chains to ensure the compliance of raw materials and improve production processes to reduce the use of hazardous substances.   6. Supply Chain Due Diligence   The regulation requires battery manufacturers to conduct supply chain due diligence to ensure the legality and sustainability of raw material sources. Chinese battery manufacturers need to establish comprehensive supply chain management systems, rigorously screen and audit suppliers, and ensure all raw materials comply with EU regulations. This not only helps enhance the company's image but also strengthens market competitiveness.   7. Performance and Durability Requirements    The EU sets specific requirements for battery performance and durability. Chinese battery manufacturers need to make technological improvements and product upgrades to ensure their products meet these standards. This may involve investment in research and development and enhancement of production technology, but it also offers an opportunity to improve product quality and brand reputation.   8. Safety Requirements for Stationary Energy Storage Systems   For stationary energy storage systems, the new regulation sets strict safety testing requirements. Chinese battery manufacturers need to ensure their products pass these safety tests. This means companies need to enhance their safety design and testing capabilities to ensure product safety and reliability in various application scenarios.   9. Battery Labeling Requirements   The new battery regulation sets detailed requirements for battery labeling, including manufacturer information, battery type, production date, weight, capacity, and more. Chinese battery manufacturers need to make corresponding adjustments to product labels to ensure compliance with EU regulations. This involves not only label design and production but also updates and upgrades to information management systems.   Facing these challenges, Chinese battery manufacturers need to proactively respond by achieving compliance with the EU's new battery regulation through technological innovation, management enhancement, and regulatory compliance. Although the process is challenging, it also offers an opportunity to improve product quality and corporate competitiveness. In the context of global energy transition and green development, battery products that meet international standards will have broader market prospects and stronger competitiveness.

view more

In 2024, lead prices experienced a significant surge, reaching a six-year high. This article aims to analyze the multiple reasons behind this rise and explore the economic and market factors contributing to it.   Macroeconomic Factors - Inflation Expectations: Inflation expectations in the macroeconomic environment are one of the key factors driving up lead prices. As market concerns about inflation intensify, investors seek safe-haven assets, and lead, as an industrial metal, naturally sees its price boosted. - Financial Attributes: Lead has financial attributes, and its price is closely related to macroeconomic indicators. Following the rise of other base metals like copper, lead, as a relatively lower-priced commodity, attracted investor attention.   Supply and Demand - Tight Supply: Limited battery recycling during the off-season led to a tight supply of lead concentrate. Additionally, the implementation of new national standards required primary lead smelters to undergo technological upgrades, increasing production costs and further constraining supply. - Stable Demand: Despite being in a low-demand season, the high inventory levels in the lead-acid battery industry chain indicate stable market demand.   Policy Impact - New National Standards: The implementation of new national standards requiring lead smelters to improve product quality has not only increased production costs but also indirectly pushed up lead prices. - Reverse Invoicing: Changes in tax policies led battery recycling companies to adopt a wait-and-see approach or to stop issuing invoices in the short term, resulting in a tight supply of recycled batteries and further driving up lead prices. - Trade-in Policies: Government subsidies for trade-in policies stimulated market demand, especially in the automotive and electric bicycle sectors, providing additional upward momentum for lead prices.    Market Sentiment - Capital Flows: Inflows and outflows of market capital directly impact lead prices. During the price surge, capital inflows pushed prices higher. - Primary vs. Recycled Lead Price Spread: The widening price spread between primary and recycled lead reflects the tight supply of primary lead compared to recycled lead, supporting high lead prices.   Conclusion The rise in lead prices results from a combination of factors. Inflation expectations in the macroeconomic environment, tight supply and demand dynamics, policy changes, and market sentiment fluctuations all contributed to the increase. Looking ahead, while lead prices may remain high in the short term, they are likely to face new adjustments as supply-demand imbalances ease and macroeconomic conditions evolve.        

view more

We had a great time with customers from all over the world. Canton Fair is so far the best trade show that we've ever been to. We'll stick to what we like the most and we'll get better. Can't wait to see the Autumn Edition coming.  

view more

During trading on March 28th, Shanghai lead prices surged ahead by over 2% amid a general rise in the domestic base metals market. In today, prices peaked at 16,515 RMB per ton, marking the highest level in over two months since January 25th. By the end of the day, the main Shanghai lead contract closed at 16,465 RMB per ton, up by 1.82%.   Tightened Supply is the Primary Driver   Market analysis indicates that the main reason for the surge in lead prices is the tightening supply. News of reduced production from overseas mines significantly impacted the market. Several companies announced temporary halts in mining operations and lead-zinc mine production, intensifying market expectations of a shortage in ore supply.   Maintenance at Domestic Smelters Aggravates Supply Tightness   Domestically, due to the approaching off-season for lead-acid battery consumption, primary lead smelters mostly chose to undergo maintenance during this period, further reducing market supply. According to recent surveys, additional smelters are expected to join the maintenance lineup by the end of the month, further exacerbating market expectations of tightened primary lead supply.   Decreasing Inventory Levels Support Prices   Inventory data also supports the upward trend in prices. As of March 25th, social inventories of lead ingots in five locations monitored by SMM fell to 55,900 tons, reaching a low point in a month. On March 28th, inventories continued to decline slightly to 56,200 tons, indicating a tense supply situation in the market.   Impact of Off-Season Consumption Begins to Show   Despite the strong resurgence in lead prices, the impact of the off-season for consumption in downstream sectors is becoming evident. Downstream enterprises are adopting cautious procurement behavior, and the operating rates of lead-acid battery companies have been declining since last week. According to traditional market patterns, April to May is the traditional off-season for the lead-acid battery market. If subsequent orders continue to weaken, the operating rates of enterprises may further decline.   Comprehensive Analysis   Overall, the current rise in lead prices is primarily driven by tightened supply. In late March, the lead market showed a trend of decreasing supply and demand. Although profits from recycled lead have somewhat recovered and production remains stable with some increase, the market still needs to pay attention to potential supply-side disturbances and the impact of the off-season for lead-acid battery consumption on the market.   Please note that market conditions are subject to change, and the above analysis is for reference only. Investors should exercise caution and consider the latest market information when making investment decisions.

view more