Chilean lithium miner SQM expects stable prices after earnings dip

  • 📰 MiningWeeklyCA
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 63%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The CEO of Chilean lithium miner SQM said on Thursday he expects prices for the key battery metal to hold steady in the third quarter from the prior three-month period, while predicting demand would keep growing. SQM, the world's second-largest lithium producer, reported a larger-than-expected drop in second-quarter earnings on Wednesday, dragged down by lower average selling prices for lithium even as it shifted larger volumes.

The CEO of Chilean lithium miner SQM said on Thursday he expects prices for the key battery metal to hold steady in the third quarter from the prior three-month period, while predicting demand would keep growing.

"Since mid-June we have seen some negative trends in the Chinese index, followed by other indexes later on," CEOsaid in an earnings call, adding that the company's selling prices have various lags to spot prices depending on its contracts. Lithium prices have sky-rocketed over recent years amid soaring demand from the electronics sector and car makers, as more stringent environmental regulations drive a shift towards battery-powered vehicles.

SQM posted nearly a 37% year-on-year drop in the average price it received for its lithium in the April-June period and a 33% fall from the first quarter, even as its sales volumes soared.The company forecast higher sales volumes to continue into the second half of the year, while analysts at Itau BBA pointed to a strong demand outlook from EV makers in China, the United States and Europe.J.P.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 48. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Glencore earnings cut in half but CEO says things are healthyCompany is still planning to acquire other mining operations to improve its global stake in transition metals
Source: sudburydotcom - 🏆 6. / 89 Read more »

Transnet CEO Fears Major Job Losses in Trucking Industry After Road Demand FadesSouth Africa’s surge in trucking that’s emerged largely due to higher coal prices and train bottlenecks may lead to catastrophic job losses in the road transport sector when factors ease, according to the head of the state-owned port and rail company.
Source: BNNBloomberg - 🏆 83. / 50 Read more »