Lead demand may get boost from battery sales
Lead demand may get boost from battery sales
LONDON (Reuters) - The recent cold snap has led to a sharp jump in battery sales at European car parts retailer Kwik-Fit and could boost demand for battery material lead.
"Last week's battery sales were 70 percent over the same week last year," Patrick Evans, a spokesman for the company told Reuters on Monday.
"Clearly the early cold snap and snow has taken its toll on batteries," he added.
Lead-acid batteries used in cars and other vehicles are much more prone to failing in extreme weather such as hard winters and hot summers.
Batteries account for about 80 percent of global consumption of the metal.
Last Friday, car breakdown company RAC said it fitted 40 percent more batteries in Britain in November (Berlin: NBXB.BE - news) than in the same month last year.
It expected the increased failures, along with fitting of larger, higher output batteries, to lead to a significant increase in lead demand.
While stocks of lead held in London Metal Exchange (LME) warehouses are close to 10-1/2 year highs, shipments recently have been leaving a diverse range of warehouse locations, suggesting a widespread pick up in industrial demand.
LME inventories rose by a net 275 tonnes on Monday, but while 1,000 tonnes were delivered in to warehouses, 725 tonnes were also taken out of various sites, including in Europe (news) .
But, unless the wintry conditions continued unabated, Kwik-Fit expected battery sales this year to be broadly similar to 2009, citing last year's harsh winter.
Sales might just be phased differently, Evans (EVAN.PK - news) , of public relations agency Citigate Dewe Rogerson, said.
AA patrols in Britain, meanwhile, are changing between 700 and 1,000 batteries daily, according to Vanessa Guyll, a technical specialist for AA Public Affairs.
The AA provides various services to drivers, including vehicle breakdown cover.
"We always change far more batteries at this time of year. The cold weather slows the chemical reaction in the battery and there are many additional loads on it - heaters, heated rear screens, lights etc," Guyll said.
The AA did not have any year-on-year figures with which to draw comparisons.
"Battery failure is our biggest reason for call outs - and has been for many years," she said.
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