Chile: SQM is affected by the collapse in lithium sales

A fall in lithium sales impacted quarterly earnings of Chile's SQM, one of the world's largest producers of light metal used for electric car batteries.

Exploitation of the land in the Salar de Atacama in Chile

Exploitation of the land in the Salar de Atacama in Chile. REUTERS

Reuters | Fabián Andrés Cambero

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Leer en español: Chile: La empresa SQM se ve afectada por el desplome en ventas de litio

The Chemical and Mining Society of Chile, SQM, which is also one of the largest players in the fertilizer business, added 70.2 million dollars in profits between April and June, representing a 48% year-on-year decrease.

Meanwhile, revenues from sales of lithium and derivatives during the period decreased by 24.7%.

"We still believe that the supply (of lithium) will exceed the growth of demand during 2019, as part of the expected growth during the second half could be delayed," the company told the local securities regulator.

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"This new supply that enters the market will continue to have an impact on prices, and we believe that our average prices obtained could reach approximately $ 10,000 per metric ton during the third quarter of this year," he added.

The company's total revenues in the second quarter fell by 22.6%.