Wednesday , April 14 2021

SQM reports lower sales of lithium



In the first nine months of the year, he reported a profit of US $ 331 million, an increase of 4.7% compared to the same period last year.

This is not the best quarter for SQM. And that the non-metallic mining company associated with Julio Ponce Lerou was saying that less lithium was being sold due to delaying investments, a situation that was in affect the company's results in the period July-September.

As stated by the company, lithium sales in the third quarter reached 9,300 tonnes, which is approximately 27% less than what was achieved in the same period last year. With this, lithium sales between July and September reached US $ 152.8 million, 9% less than in 2017.

"During 2017, we announced a significant expansion of lithium near Antofagasta, which would enable us to increase our capacity of almost 50%, which included a complete renewal of an existing plant in a short period and low investment .
We announced earlier, the start of the completely renovated plant has been more challenging than expectation, which has affected our ability to produce high quality lithium in says the general manager of SQM Patricio of Solminihac, who is affecting our sales.

The manager also noted that "we are working diligently to solve these problems as soon as possible," adding that the effect will be relaxed until the first quarter of 2019.

"The sales volumes in 2018 could be about 45,000 tons," said Solminihac.

Anything from the company is optimistic given that they continue to see a strong market for lithium, anticipating that demand growing by over 25% this year.

"Due to the above, prices in the lithium market remain strong, our average prices during the third quarter remained relatively stable compared to the second quarter, We believe our prices for the fourth quarter will continue to be similar to the third quarter. "says the manager.

Results

Despite the numbers reported in the lithium business, the company reported during the nine months of the year the profit of US $ 331 million, an increase of 4.7% over the same period last year. On the other hand, sales reached US $ 1,700 million, an increase of 7.4%.


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