Is the sky falling?
Luckily, the sky is not falling, but the price for scrap lead acid batteries has been. According to a recent article in the AMM, recent price drops at smelters have pushed prices to a 2 year low.
The combination of a volatile and lower moving LME price for lead coupled with ample supply, the smelters appear to be taking full advantage of the situation, and as the article illustrates, are pushing the prices paid for scrap lower.
Based on my discussions with our consumer and other dealers, the fact is, there is a lot of supply out there and smelters are only going to pay what they have to.
So as we enter the winter season, we anticipate further price drops for scrap lead acid batteries. With cold weather killing battery cells, we anticipate the supply of batteries to remain constant or increase, giving the consumers no incentive to tighten their spreads or pricing. As the article notes, I would expect them to test the floor for their pricing.
As you know, we are keeping our ear to the ground and will constantly look to provide you value for your scrap batteries and all other metals and alloys.
If you have any questions, please don’t hesitate to reach out.