Albemarle cuts 2019 forecast on lithium price pressure
2019-10-25 15:06:31 [Print]
US-based Albemarle Corp, the world's largest lithium producer, on Thursday cut its sales and profit forecasts for the year, hit by a continued slump in prices for the metal.
Demand for lithium, a key component of batteries used in cell phones, electric vehicles and other consumer goods, is widely expected to spike by 2025. But global trade tensions, the scaling back of electric vehicle subsidies in China and increased production have pressured prices in recent months.
The company now expects adjusted earnings per share in the range of $6.00 to $6.20 in the year, compared with its previous estimate of $6.25 to $6.65. Albemarle also trimmed its 2019 net sales forecast range to $3.6 billion to $3.7 billion, from $3.65 billion to $3.85 billion.
The company said lithium unit sales volume in the third quarter was lower than expected mainly due to Typhoon Tapah, in late September, that caused lithium shipments from ports in Shanghai to be delayed into October.
Demand for lithium, a key component of batteries used in cell phones, electric vehicles and other consumer goods, is widely expected to spike by 2025. But global trade tensions, the scaling back of electric vehicle subsidies in China and increased production have pressured prices in recent months.
The company now expects adjusted earnings per share in the range of $6.00 to $6.20 in the year, compared with its previous estimate of $6.25 to $6.65. Albemarle also trimmed its 2019 net sales forecast range to $3.6 billion to $3.7 billion, from $3.65 billion to $3.85 billion.
The company said lithium unit sales volume in the third quarter was lower than expected mainly due to Typhoon Tapah, in late September, that caused lithium shipments from ports in Shanghai to be delayed into October.
Spodumene Li2O 5%min In port China
Unit:RMB/dmtu
China's lithium maganate producers' sales volume statistics by province by month
Unit: RMB/mt
