8th World Antimony Forum
TBD
Guiyang, Guizhou, China
12th Rare Earth Summit
TBD
Hangzhou, Zhejiang, China
11th Aluminum Raw Materials Summit
TBD
Hangzhou, Zhejiang, China
9th Magnesium Summit
TBD
Hangzhou, Zhejiang, China
13th World InBiGeGa Forum
TBD
Hangzhou, Zhejiang, China
7th World Antimony Forum
June 13-14, 2019
Changsha, Hunan, China
7th Refractory & Abrasive Materials Summit 2019
May 23-24, 2019
Qingdao, Shandong, China
10th Aluminum Raw Materials Summit
May 16-17, 2019
Zhengzhou, Henan, China
11th Rare Earth Summit
May 9-10, 2019
Qingdao, Shandong, China
8th Magnesium Summit
April 11-12, 2019
Zhuhai, Guangdong, China
12th World InBiGeGa Forum
March 14-15, 2019
Zhuhai, Guangdong, China
SQM warns of further slide in prices in 2020
2020-03-05 08:49:27 【Print】
Chilean miner SQM, the world's No. 2 lithium producer, saw profits tumble in the last quarter of 2019 and warned that early 2020 sales in China, a key market for the battery metals used in electric vehicles, could be hit by impact of the coronavirus.
The lithium giant is the latest miner to report grim 2019 results as overproduction of the metal drives down prices and dents revenues.
SQM posted fourth-quarter net income of $66.9 million, a 38% drop compared to $108.6 million in the same period in 2018, according to its quarterly earnings statement. Gross profits slid more than 30% to $137.8 million. Quarterly lithium revenues plunged 57.4%, battered by continued low prices, the company said.
It added that the oversupply driving the fall in prices could linger into 2020 and "further impact average prices this year when compared to 2019."
SQM CEO Ricardo Ramos said overall lithium demand nonetheless grew 14% in 2019, in line with the company's expectations. He called the uptick "significant" but "lower than expected."
"We believe that the fundamentals behind demand growth in the lithium industry are stronger than ever," Ramos said. "During 2020, we believe the European electric vehicle market will gain momentum and contribute significantly to lithium demand growth," the company said in the statement.
In China, Ramos noted logistics had been dogged by the coronavirus but said there were signs things were getting back to normal. "Depending on the evolution of the coronavirus outbreak, we may be able to recover some of those sales volumes and reach 55-60k metric tonnes in 2020."
.
The lithium giant is the latest miner to report grim 2019 results as overproduction of the metal drives down prices and dents revenues.
SQM posted fourth-quarter net income of $66.9 million, a 38% drop compared to $108.6 million in the same period in 2018, according to its quarterly earnings statement. Gross profits slid more than 30% to $137.8 million. Quarterly lithium revenues plunged 57.4%, battered by continued low prices, the company said.
It added that the oversupply driving the fall in prices could linger into 2020 and "further impact average prices this year when compared to 2019."
SQM CEO Ricardo Ramos said overall lithium demand nonetheless grew 14% in 2019, in line with the company's expectations. He called the uptick "significant" but "lower than expected."
"We believe that the fundamentals behind demand growth in the lithium industry are stronger than ever," Ramos said. "During 2020, we believe the European electric vehicle market will gain momentum and contribute significantly to lithium demand growth," the company said in the statement.
In China, Ramos noted logistics had been dogged by the coronavirus but said there were signs things were getting back to normal. "Depending on the evolution of the coronavirus outbreak, we may be able to recover some of those sales volumes and reach 55-60k metric tonnes in 2020."
.