At current run rate "SQM said" they are on track to produce 70kt in the 2020 CY. While their sales were up q-o-q to 12.6kt, they must be stockpiling ~20kt, unless Chile have 6 quarters in their fin year. They are moving their projection periods to suit whatever suits their narrative.
Joe Lowry also commented - Since SQM won’t give details, I will. Hydroxide share in the high value Korea market has dropped YOY Jan - June from 41% to 15%. Demand for hydroxide was up 50%. In the high value Japan market, SQM share is 4%. SQM share is growing in low end China market. Quality remains an issue in battery.
Commodity carbonate, good to lube your letterbox lid hinges, and on that note, when there was a deficit in 2016/17 and prices were in bubble territory, quality didn't matter, as they could reprocess to eventually get it up to some sort of battery spec, though I wouldn't wan't be the owner of a China made 2017/18 EV model. Now that the western OEM's are on board, and Li prices have dropped, we are seeing a breakdown in the various grades, end uses, etc. With regard to what Joe is stating above, SQM's hydroxide must not qualify as battery material, therefore only option to sell its production into grease, ceramics, etc markets.
PLS Price at posting:
33.0¢ Sentiment: Hold Disclosure: Held
(20min delay)