battery prices

Malaysia's automotive battery makers hike prices by 15-20 percent - report

08.09.07, 6:03 AM ET

KUALA LUMPUR (Thomson Financial) - The Battery Manufacturers Association of Malaysia said Thursday the prices of automotive batteries will be increased by 15-20 percent with immediate effect due to the sharp increase in raw material costs, the official Bernama news agency reported.

Chow Siew Hon, president of the association, said the price of lead, one of the major components in the battery, had increased by about 590 percent to more than 3,000 US dollars per metric ton since June 2003.

'This drastic increase in raw material has affected production cost, which grew by between 15-22 percent ,' he said.

Chow said the price of automotive batteries was last reviewed with an increase of 15 percent in March last year due to rising prices of lead, liquefied petroleum gas and polyportylene resin.

He said China's decision to withdraw incentives for lead export and supply shortage are also to blame.

Besides Malaysia, China, Thailand and Indonesia have also seen battery prices surging due to higher lead prices, the report said.

(1 US dollar = 3.45 ringgit)

aipeng.soo@thomson.com

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