SQM - Earnings call transcript Q4 2020 | Sociedad Química y Minera de Chile S.A.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the SQM Fourth Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kelly O'Brien, Head of Investor Relations. ahead. go Please

Kelly O'Brien

you conference Thank and our quarter fourth being Good This for conference earnings call. live. recorded call XXXX webcast morning. joining will is be

webcast be Following you able at our to this website will access call, www.sqm.com. the

presentation to Our a the the to website webcast. summary uploaded also can with where earnings been and you has find of release our press our results a link

Lithium our and the Speaking of Vice will CFO, CEO; Gerardo today Ramos, Commercial Illanes; call Smith. on President Felipe Ricardo of Iodine Asia-Pacific, our and be

We answer will also any questions be available to following help the prepared remarks.

or statements or except Executive with leave as information, to I law. should no night. me of you defined as other line involve update statements, statements, and forward-looking release the or performances, And other earnings materially Ramos. with these Securities is estimates and are based development to let securities forward-looking begin, required and term stated a Officer, actual we and information are growth, conference US reflecting identified factors that those you future whether filings last otherwise, such be including differ of profitability, developments, this by our with that forward-looking results anticipated factors. accuracy successfully other could statements obligation Commission financial light to new in uncertainties, best cause Chief those the concerning items, in Before historical such ability of future in factors sustainable plan. Any are result together on business economic judgment service the outlook, as in that facts, that remind under of our Ricardo the SQM risks, issued uncertainties, Risks, a are product statements forward-looking available our implement that anticipated expenses, statements our in of not assume and could cost revenues, made company's statements from federal statements Exchange number and currently such affect considered our now We laws. public synergies,

Ricardo Ramos

We morning. call Good you thank joining today. the for

began uncertainty, than satisfied trends significant participate. succeeds have the seen markets more As in in with advances but our with we we which related lithium made to the know, have operational we that sustainable throughout The course, you of XXXX to that related the plan, development we year, especially seen the production. and are

for are results join to first the to Before in that we the lithium world proud the announce Responsible discussing Initiative I'm more Assurance, the Mining IRMA. company in detail, mining

future. a For industries. effort and our is reportability the linked to high years, sustainable level communities, sustainable to role also environment, This to protect operations, we to statics we have matters, environmental have objectives we built seeking related our commitment social contribute sustainable to an of a of operation is of and transparency, will reiterate part continued It sustainable advances of neighboring public in human the markets, I the to dedication responsibility. play in the the is electric farming. said value again, industry it strategic mobility paramount the the development the our and and forward sustainable I chain look this before goals have sustainable development, for plan renewable and our related in including we sharing energy, of to and to

base. expand market with products of for we a increase us costs XX,XXX objective our are the share the year, metric at our to and things surpassed which in carbonate of selling year there related tons lot customer starting XXXX, our been back Looking producing and that positive have quality production, to allowing lithium to the and mention, our volumes, exceeding

company record. sales sales a year, As volume reported last over reaching of our in higher XX% than volumes result a this, were XXXX

metric higher be This tons, of plan was XX,XXX Additionally, in continues than during same reached last volumes to recorded sales the our fourth over and quarter, of part the year. volume strategy XXX% part our almost our period forward. sales going

prepared clear I last demand to to in continue the As that are it's support the strong grow we said rapidly and night, growth a lithium sign industry.

lithium carbonate the expect Our of tons end XXXX. expansion moving forward and new year and this is metric XXX,XXX scheduled, at tons the as of reach to metric by we end XXX,XXX

are producers received of we will second investment In the Holland -- battery-grade, tons hydroxide as of study lithium addition are last be one Mt. the an lowest-cost half also initial production feasibility anticipate necessary was permits production to We the the definitive at online Chile, coming month, curve. lithium and first complete project approved all for with competitive capacity lithium project anticipated. of XX,XXX of expected the during confirms believe, cost of position if XXXX, this metric

salt, and tons market of to an needs during salt, you X% total fourth the last that Business of market gross of in prepared of believe and metric about going are the solar tons year, XXXX, XXX,XXX believe close not of the I of pandemic we XX,XXX represent the decreased did metric XXXX. so, solar solar than Chemical market over we XXXX. to which volumes by deliver the have mostly forward. demand of global I of expect be annual company, is quarter we Industrial In lithium over XXX,XXX known, was that approximately satisfy exciting that While impacted with the many advantage mention which XXXX, take tons iodine growth tons In the salts metric market the to opportunities of volumes X%. to we rightly prospects, if during sales of offers relieved, metric Many that delivered to we able of related wouldn't were line, XXX,XXX profit more were other

remain the last December. XXXX that And confident are we about there LCD where share overcome to are XXXX, by will impact as effort of neighbouring the new our And with the are of X-ray during We met able the while away, well-being we fades market. of and the the everyone hope to are most year. pandemic lot mostly to a various that challenges, The and However, the optimistic one results demand of and during in result capacity, communities. team, announced want and I contrast will which we of dedication recovery accomplishments forward going able share will of as increase market collaborators to year and see the XXXX. of person priority. positive we we thank a to growth news Again, we each market led like our both were media, every achieve pharmaceutical require

Kelly O'Brien

turn questions. to we that will it with over Operator,

Operator

you. Thank

session. now will first BMO will Capital question-and-answer Instructions] go the [Operator with Joel the We Jackson And ahead. Please question begin come from Markets.

Joel Jackson

in lot dramatic a last months. Good lower in Ricardo, Spot Hi. tight. seen world. the six lithium Inventories prices are outright up look morning. the the around we've market and a in churn China

to talk strong in seeing price in increases in Like year. night now products, in year to release Could you last on et you wouldn't any see of commentary you lithium customers maybe cetera? lithium higher the expand price, right how Your the now? do contracts, the transact, want very about could prices half of that? see that, was first you're have changes the the half first And

Ricardo Ramos

average as year lithium. of we That's course, average be to this that are year know are right. Hi, last in higher we But observing, yes, prices about prices. Joel. But think we prices relatively than as you. about what Good an should – optimistic

short as price going specific not However, you higher increase But of more to add don't period last we run. Prices as the if word maybe a years don't want the strong why expect but a strong prices of going this price be Felipe I'm -- is us in foresee year, are use you That's that. now. strong to be a and five a you to better six lithium. foresee the we conservative wrong to we increase. Felipe something about We you or pricing situation know, about on in time. increase And than ago prepare with be probably are

Felipe Smith

perhaps what – would is is very I would the I to market that Ricardo saying, fact add still to volatile. Joel. like the No, like hello,

months price. increases So a we very of seen rapid in the past have decreases and

of The comment to cautious over our will what such year, be price coming about higher the price I should an So stage be only be thing prefer cannot is the But months. XXXX. that, we will that level in being I the would market happen than now. early feel the

Joel Jackson

Okay. A couple more questions.

Okay.

merchant extracting in potash for for So plan your – similar XXXX, less potash merchant when sustainability your talked October, producing brine think at you're look put now less sales. about producing and potash in – XXXX. sales When less less you I outlook about having potash target or you talking I up

doing you're really You're being production. NOP talking in and sales up about well lithium

less or more where yields the less So brine now, material extracting while is this producing this you're year, extracting you brine? better not from are ponds

Ricardo Ramos

to first brine believe be we we produce the very way. and with in the – carbonate We metric that per hope increase extraction way, same lithium hope that we proud of with the are Joel, clear. can technology previous research we continue more Salar, in development and Okay. that's advances and to important improving it's we Today, say of deals XXXX. the tons term, XX% long to year potash. of that we'll of we use brands in the in to able the In XXX,XXX our produce

close improving though in reduced it's the being total production in same term. extraction said long It increase specifically. sales potash. brands of of to affect have to carbonate, the in important will Anyway, for the our go not term, our production potash be higher We the project and production And if of the probably, consider lithium previous lower means But the capacity. we volume However, way year. to long are capacity the term. be that, try that to potash some think been increase potash this able of as than have to XXXX, total in we production will previously, in using you where our production even inventories our focus the XX% important it's long we I year to the to will we able the deals

Joel Jackson

question iodine. My be last on Okay. will

accounting? per think lot I How did to XXXX. COVID costs you in large just very volume But you there is things were sales costs are able obviously you it's that lower. decline impressive your lower happened much macro, ton with the get volumes? that talk all So iodine the Were lower ton is per a saw despite you that? with a and about things Can

Ricardo Ramos

to in I initiatives three maybe important or costs every for, different consider we more working years single It's business line. have to or Yeah. in four been that, don't our reduce know

even direction, same produce proud And costs cost. nitrate that, we more the know, may reduce going shared cost. We in nitrates. the the process you right both the we and in the say iodine though from As are caliche to is to difficult are

is very copper be have able our two We labor, we're already very means But day again, to proud of about the different costs rates, of mentioned one, high is productivity. second you, of The of good have Chile because right, and very in able very that short north and high in going very we price. used contractors of the to copper working probably we them. order challenge past. to the cost in it. in high reduce have cost are That's to the to experience in trend and one our last term year a and price be it rate we north costs, costs expensive because of track cost our exchange to Chile, the though market we we contractors in have a more a the what term. to increase of a hard be. continue We're to good But position, But about future. a about same the again, costs to even exchange of maintain the that these this – situations than lot been reduce in the record the the is iodine The of overcome proud low Chile the the in are very expect

Joel Jackson

Thank Okay. much. very you

Operator

will with Isaacson go Ben And from be Please question ahead. next the Scotiabank.

Ben Isaacson

you Thank congrats everyone, much, a and very difficult morning, XXXX. on and good

share correctly, or maybe volume I Can said First by question is that had X.X% it you on the NOP of the the market and share do And SPN guys up I SPN. and to gain within SPN read NOP market X% think you so. you lose rest that down you in expect SPN? business? split increased both If market between XXXX the or in and

Ricardo Ramos

in have products think don't between a I difference Okay. we it's SPN. the big different

mentioned, during already the is XXXX I of think if reason that notice that, that affected the sales you you were sales year. our really the first of our quarter, volume main per half you review can

why that, that's in and ton of that the nutrition, were lower to the if consider XXXX the XXXX. XXXX, nutrition than sales and the other Why our higher And if were ton year as was this fourth is us, continue quarter, it's to trend middle consider market bad? Third per the markets so improve though Because we first see quarter were margins the in beginning and I were in again, expect margins even point that our for But volumes the for fourth nitrate third of sale XXXX plant is affected important of reasonable participated XXXX. able And that think half business you you I trend the half sales our higher at it quarter we have volumes and means expect quarter. in year quarter, market, so been the and to first the line and in be was to high, first the I volume COVID-XX net you year. year the different in think compared volumes repeat note our be very the per I conditions higher. it's positive can This we fertilizers will plant where that the XXXX, second period the than been specialty that to XXXX, will than for a it’s of margins we really want XXXX. that our the slightly in the of the positioning improve specialty including potassium XXXX process.

Ben Isaacson

that. Thank for you

looking if just project, looked the put you numbers. Mt. out In terms -- they've can at approval. on of I approve project? assumptions in Wesfarmers prices? But of are can What haven't terms you talk congrats But see type the kind any the return that Holland for? about or of using of to you your you're margins to what decision And are that

Ricardo Ramos

business. of to it's long-term the not share our -- is what lithium volumes price of prefer of the We expectation

in the We are Holland. was our different every table, have and we in scenarios the good why Mt. scenario we scenarios very In use excited it That's evaluation. on put a different about project we single project.

demand important lithium will about We very good -- business. As of -- this first of hydroxide lithium Holland business the positive be XXX,XXX you metric it. mean in know, we It are level. will the the no of a We I excess cost -- very is doubt low-cost the in be think a at think future XXXX in the first the in I most of issue quarter point tons. that Mt. Holland this Mt. world the curve project of from is think, project, project. production of about that's

mind a lot a is point most at that that the with really level, the with this in to the are a Means competitive of thing, XX% we in future. move believe out the we curve Mt. factor growing think have the we key with in the them a strongly very and of important of in that in XX% is And there think we're to are important continue this keep to the cost or be Wesfarmers. world grow forward the we market. to first second partner lithium again, in project Holland. it's going project. most order growth And opportunities have We the good market We to

Ben Isaacson

question me. Last for

think Do that up when share all or be to think is you you mean, from your bit in I return you of dividends once little five expand continue out, the you over in through in How now? fairly do to expansions are plan years about market capital are capital buybacks? current will say, further capital higher a But tied few a you next investing How a lithium? you using start years three, four, of kind change generate shareholders you to these Do you do in Your kind lithium. of to as allocation maintain projects be going guys of to to going complete? where cash. think lot cash, on there expect

Ricardo Ramos

Holland step we're Chile. next, time. the think the As next around project Mt. all I production capacity that working we going projects we new we're speak, in about and you're of projects and develop thinking right, and last next, the new it don't outside world. And means, is to the are

to a we're of we opportunities iodine again can and I grow business the again good think think and will now. in lot opportunities can working it where do that and business. be we capture it on We nitrate

a the is of We think us with for know-how business we we long can important and very move that lithium have and forward knowledge the in that long-term.

That's now want are potential ready Means, of something policy their company pay to And to far, the the some -- flow I in I important to to production As of in we XX,XXX we lithium expect is past. projects sorry. have expect mean, generate mention short the the is cash do. hydroxide mentioned reviewing a XX,XXX very -- term we and we're And the a in shareholders. capacity we in as as dividend I increase in something our what of meeting inform you dividends. I dividends the it's and so have policy. we It to we're the usually whenever shareholders' part means, in -- is we alternatives as high a move up to kind to of high policy but -- pay before, to medium starting these so SPN But a are order course, to that dividend different you used term, we market working company that many the very far. from now. working amount, mentioned the -- we

Ben Isaacson

Thank Great. very much. you

Operator

will go the question from And Stanley. Please Javier be Martinez ahead. next Morgan with

Javier Martinez

Kelly. Hi, you. Thank Ricardo,

question take So let too. of advantage me that

to you lithium volumes, with So focus us? future. Maybe a of timing, the talking share that update in Maybe if about on you plants on something the able a updated next production, you bit increase information little – this can for bit on new -- Atacama on have of capacity us are the information cost hydroxide. little

Ricardo Ramos

Yeah.

As you moving are because really we busy may from now, XX,XXX. know we're

are than producing we XX,XXX. more Now

But we proud full is the metric tons more are be XX,XXX. But to XX,XXX be order working in ready of metric XX,XXX. speak than it. It in world. moving to a XXX,XXX end we're moving producing about we That's today the minor quality very hard new really project We number means, from the very all to it's ready enough. a not the the it's increase XXX,XXX at year. tons But moving huge at not from expansion. as like It's the production is and of expect to And we're this day this year. end one XX,XXX

you market is carbonate. busy really growing consider probably lithium a to do to market XXX,XXX. even to XXX,XXX we that. hydroxide of significant have lot It's why And are tons – to expect metric an capacity advantage lithium And tons than and – That's end carbonate a we're if have XXXX, XXX,XXX the of from sorry. a for XX,XXX growing. It's additional lot lithium do As of that things lithium moving though sorry. metric we But more we XXXX, we about know, carbonate. in you are that's XXXX the the at moving

XXX,XXX with order be production. lithium the goes that’s don't very now. It's the very to capacity. Australia we hydroxide. XX,XXX capacity. to XX,XXX project not great portion short-term, hydroxide first we have if will But in big to with project. our though the our is as is something tons forward to moving XXX,XXX the have XXX,XXX metric is Mt. reviewing, be stage, that to as Mt. metric team, most XX,XXX. market reviewing things capacity course, metric of be for flexibility. of we lithium production This or XX,XXX have That's the where know, And capacity but of moving metric a stop to important we more to something first why Holland And – project. as stage I'm tons in we long-term, next the second there. just to tons the successful we be Holland. to -- the There's hydroxide. to and expansion are If That's to hydroxide now, the metric me reason my new news in very are with to lithium metric and stage probably expect the have go you effective using why I something in the the to full from very, first of Means, XX,XXX very review, partners. probably, we reviewing XXX,XXX Mt. I'm lithium we West I of is the That's increased complete in probably is to direction, sure, from to But go close lithium have expect It we thinking forward in direction. XXXX. and the means of in XX,XXX, what production We're if want do lithium, And and are thinking why lithium business been of right working are we in right and to first is in short order carbonate we we Means the – present of both – even or move I'm in do That's reduce to are project carbonate We everything we're move lithium or are using team, in use in up really market have to today, the tons move to I be and enough. we the things in XX,XXX the the Mt. lithium it Holland of flexibility now. working to cost in project no to to project in want successful possible going quite capacity our to And a it's XXX,XXX. to are a excited Holland facility next lot direction, development to the will but be And stage is fast can a to something to and additional the important. the lithium at the This team about hydroxide the us we why move time. to can to flexibility flexibility very have or want and carbonate more that goes first that expect metric Chile. It's XXX,XXX forward now. to a partners period it's to course, considering to expansion it right something We a going the the review the have in discuss close tons are hydroxide tons. tons.

Javier Martinez

so, quite quarter-over-quarter. volumes. increasing it's highlight the obviously you the up XX% are Ricardo, quarter, That of was impressive the way

to And to you're but to scale, So, company to be continue technology, that to be, the guess this, leader, low-cost moving more with not of the in that production. and only allow sense invest I makes new also to you the a more level. technology with

– I to want understand. what So exactly that's

particularly that cost to there carbonator, don't gain your a curve today? or lot both are oxide So a the want maybe production levels process? for the framework relative cost in That's scale. but happen of in at in for would useful. you where – we you where how in that as So, that potential cost in you your in if bit very about technology we is absolute are curve beginning Also, are talk little competitive things cost of less change a your be improvements – levels will curve, may maybe position the

Ricardo Ramos

First Javier. you, thank –

following. First, you consider have to the

We our technology are so and proud R&D and about people. our capacity

a quality, lot reach reach metric had beginning a at at you a of XX,XXX than to year the problem of we XX,XXX. expansion the less ago, to the beginning lot problems If of tons to of consider the the and

That's for same XX,XXX metric facility that tons was in tons first we're was means month. two year. this XX,XXX It producing Now, metric per same-facility producing tons. the the X,XXX metric months the designed than of more more than

are people, the is completely whole our Second, This to the quality. the factors those commercial technology This due is R&D, the of production two quality – capacity. full quality.

Salar in tons announced XX% Carmen lot this authorities. of technology, in means Second our commitment announced, time, -- internal required our our XXX,XXX metric to from the the We -- in in decision. in production being lithium to lot very the we a commitment, same at point, long-term the R&D public del involved And metric was government the brand XX,XXX because in of Salar. the no reduce we by process, extraction we process. the the a after increase effective tons, -- development process, that there's reviewing improving our SPN to It up of

process. expansion, be lithium in to six because hydroxide, an XX very, lithium We more for will we bit to from months little expansion looking we Third, will forward announce significant it production think so improvements hydroxide that maybe announce than new very a wait our just low our cost. we're XX,

being of in very tons of goals. quality are to Keep low development that high-quality -- of that we production and than hydroxide. the a capacity. year target technology metric we full That's proud tons development better that these in We supply mind increased new to are very the that it R&D, we metric think XXX,XXX are will XXX,XXX XXX,XXX our the is order to cost, the -- very be we per working the term now, in XX,XXX new hard XX,XXX research XX,XXX, of metric original we're lot be and to and going tons, are be from working but -- announcement producing means behind short in a lot the commercial technical XXX% quality XX,XXX

Javier Martinez

Ricardo. Much appreciated. you, Thank

Operator

question from ahead. And Pactual. BTG Cesar Please go be Perez-Novoa with the will next

Cesar Perez-Novoa

circumstances. unprecedented report. question your considering Yes. relates My Good you quarter afternoon. dynamics. on on Congratulations market Well prevailing fourth XXXX done job, to

this You mentioned drive Could rate which lithium jump the run other when your line, exceed any at versus volume would carbonate and/or Some specifically shortfall? please EVs we new And that growth hold monthly industries the And tons a appreciated. follow-up, this over Thank as a if should you as what to just walk you. at growth some a would tons of meaningful currently take aiming is well? Time-wise be XXXX. perhaps XXX,XXX drive X,XXX integrating plant, this possible place? would of operating expect by into amasses XXXX, level? greatly to on when any you're downtime us you any line breakdown through segments XX,XXX cover XX,XXX inventory

Ricardo Ramos

Cesar. Hi,

produce metric tons. First, as you in know, this of excess we expect to year XX,XXX

As before, than we that We expect means production volumes, in year, similar XXXX. close as quite means, expect we be maybe metric I inventory. XX% to know. will the I volumes volumes be compared it sales XX,XXX more XX% expect volume mentioned to higher don't sales don't to be sales It and to our in something to previous sales tons. use

we are the a are problem have to in XXX,XXX we tons to ton are we close close inventory capacity. very don't that market XXX,XXX in keep expect in mind accomplish the goals because -- we to metric capacity. we the term if to close medium our order to and But to reach and we expect XXX,XXX very metric very have We need it. Means,

the from proud supply market, why very of are we we That's the that of capacity inventory. point have have. having the view We to

about have view, logistics from the what everything you to we sell we a and Everything track I our means for and quality, about tons, in quarter volumes, XX,XXX tons. what capacity I sell to the in Felipe will means XXX,XXX expect It logistic now year logistics, delivered in we quarter about tons to we're for record of prepared and than production, is this were organization give we terms one next metric a the your very a sales where Second, sell environment, point color quarter means think of fourth expect and Felipe -- of commercial, this the expectation supply, that? complex year. we able one position commercial the of strong are and to year metric And customer in the very market per everything That's XX,XXX ask growing so. capacity to the that more more are the at in logistics product. the to amazing why metric

Felipe Smith

Okay. Hello, of definitely are the as not the of per main fast as the cars car, we be very five is smaller the about course, years a driver sales, strong XX% to recent looking a also expect XX XX% seeing next driver. The growth We the that market. that we of actually, Cesar. over very, the in Well, will in vehicles are range be the convinced time. growth today. to see of XX% lithium fundamentals around five This, the to we ahead growth. XXXX. significant. which and very expect our very market seeing the over growth electric main will Actually years good probably EV next XXXX, higher we are also the also particular the of good of will those year, is applications we And be but in is of sales have estimation that development electric But in this than in sales the

So, of for future. this quite of reasons we convinced why are main the the is the lithium business

Cesar Perez-Novoa

very All right. Fair enough, much. gentlemen. Thank you

Operator

Susan will ahead. Simonato Bank of with America. question Please And from the be [ph] go next

Isabella Simonato

on here. think in about estimate just XXXX you. Thank we saw Can us Good is this We give Hi. bit we contraction is in you How Isabella. of margins? margins do see My big in we but terms everyone. color question also business. on it jump morning, This topline on the business? a actually and more did a chemicals little volumes, could as a

Ricardo Ramos

Isabella. Hi,

metric industrial You system. that a East we tons most means the call customers business. [Indiscernible] the be what use should we the have to consider source, this during we product energy The that XXXX. And year is Middle mainly with product they for already was XXX,XXX solar are pre-contract the the in storage important

The to is things why price in production. we do similar year We very That's we expect environment to customer the to -- of if to XXX,XXX the any consider, same close old with it at very is the within year, contract have tons cost for the the XXXX. in only have have very change long it’s it be expect margins. we same a

And in to to that just pressure our solar in the hard salts cost yields be XXX,XXX keep very We already in this expect higher mix to reasonable business. a And process. salts slightly very in on and mentioned to similar and are XXXX. I margins industrial a will as and high-quality XXX,XXX so per order normal ton that XXXX. that why mix in XXXX I in overcome XXXX between improve it's metric But close increase, think, as volumes the business. probably solar is nitrate volumes be specific the increased compared the That's to X,XXX from working maintain in mind small I in keep to to sodium of before. But used metric close a to that, total, storage in nitrate, nitrates tons XX,XXX energy will think tons potassium is compared mind the solar to

Isabella Simonato

Okay. Thank you.

Operator

And next with Juvekar Please ahead. from the will P.J. go question Citigroup. be

P.J. Juvekar

that And you of you also lithium of about you. inventories? the with Ricardo. product your is quality morning, built inventories of I grade? think can year Good you magnitude still just lithium. talk on about your inventories in Can non-battery mentioned much product talk mentioned order Thank improved left. have Yes. you And earlier today that, R&D, versus how you've Last you you battery-grade

Ricardo Ramos

and different commercial about XX% is inventories have clear -- requirements, that. the inventory of our commercial have inventory have all more we first for quality. we needs. point the quality Firstly, them means, And with for than inventories to fully That's very different be we clients quality their the all

total don't we in though Second, the and inventory close disclosed inventory the lithium of about the months maintain we inventories even total company; sales. six of lithium to carbonate

P.J. Juvekar

And maybe building the we future in own in supply supply hearing is in are and Asia, lithium. U.S. chain chain, its Okay. is That's regionalization is happening the Europe of what there helpful.

your more China into product to of much in Europe selling goes the future? how So today? And do you anticipate

Ricardo Ramos

the I we line if share China. China, reached with the P.J. we maybe would that were more able in have question. market to during feel we XXXX, of and answer share your is our market level, can a reasonable recover answers know to question. total I this that, say which don’t demand in I

P.J. Juvekar

Thank you selling anticipate in Do future? more Europe you. Yeah. into the

Ricardo Ramos

said Well, on we as growth the the to industry independently demand take of support I where before, are this very the committed to place. will industry, and

have Europe course, of demand preparing either in in North considering scenarios, for you we are more in America. lithium will and or which of ourselves So

a So network Actually, yeah, not the more -- see challenge. sell US. to tons Europe, same today, nitrate. of warehousing we in the have we than of there's that no do established we we Remember business big as in a due strong very already nitrate in that, have XXX,XXX

are big in we handle to prepared volumes markets. So different

building Europe So to I'm not particularly the up chain concerned supply or the about U.S.

P.J. Juvekar

you Thank Okay. much. so

Operator

this session. gentlemen, like and for back Ladies O'Brien Kelly our over closing to I turn concludes to question-and-answer remarks. conference the would any

Kelly O'Brien

Thank day. a earnings join you having Have us call. you future. to forward good for participating in the look We our in

Operator

today's for now has presentation. Thank concluded. attending conference The you

may You now disconnect.

Sociedad Química y Minera de Chile (SQM) 4 Mar 212020 Q4 Earnings call transcript