SQM(US:SQM) Zhi Tong Cai Jing·2025-08-20 08:49Core Viewpoint - SQM's core earnings declined in Q2 due to a significant drop in lithium prices, reaching a multi-year low, with adjusted earnings down 28% year-over-year to $307.9 million [1] Group 1: Financial Performance - Adjusted earnings for SQM fell to $307.9 million, a 28% decrease compared to the same period last year [1] - The company's sales volume in Q2 decreased compared to Q1 due to low market prices [1] Group 2: Market Dynamics - The lithium industry is facing severe impacts from global oversupply, leading to significant price declines, although recent production cuts in China have contributed to a price rebound [1] - Recent market dynamics suggest that prices in Q3 may be higher than in Q2 [2] Group 3: Future Outlook - SQM expects a 10% increase in sales volume in Chile by 2025 compared to last year [1] - The company has raised its sales forecast for Australia and anticipates a "significant increase" in production in the second half of the year [1] - SQM's international lithium business sales forecast for 2025 has been adjusted to approximately 20,000 tons of lithium carbonate equivalent [1] - The joint venture with Kwinana refinery achieved its first commercial production in July, with full capacity expected to reach 50,000 tons of lithium hydroxide by the end of 2026, half of which will belong to SQM [2]