Report
Seth Goldstein, CFA
EUR 101.80 For Business Accounts Only

Lithium Update: Raising 2017 Price Forecast, but Long-Term Outlook Unchanged

We’ve increased our 2017 lithium price forecast to $10,250 per metric ton from $9,000 per metric ton based on strong export pricing out of Chile, which averaged $10,000 per metric ton during the first half of the year, and SQM management’s indication on today's earnings call that production issues of new lithium producers will leave the market undersupplied.
Our fair value estimate of SQM rises to $47 per share from $40, a change that also incorporates management's more aggressive expansion stra...
Underlying
Albemarle Corporation

Albemarle is a global developer, manufacturer and marketer of chemicals across a range of end markets including energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, crop protection and custom chemistry services. The company's segments include: Lithium, which develops and manufactures a range of basic lithium compounds and lithium specialties and reagents; Bromine Specialties, which includes products used in fire safety solutions and other chemicals applications; and Catalysts, which includes Clean Fuels Technologies, fluidized catalytic cracking catalysts and additives, and performance catalyst solutions.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Seth Goldstein, CFA

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