On December 3, the largest operation in the history of Santiago Børs was completed: China's Tianqi was awarded the shares of Canadian Nutrien's SQM, equivalent to 24% of non-metallic mining in more than US $ 4,000 million.
Since the end of the transaction classified as the year's business, the company's securities related to businessman Julio Ponce Lerou accumulate a loss of more than 11%. The collapse leads to a loss of US $ 1,650 million in the stock market.
So far this Friday, SQM rises 2% on the Santiago Stock Exchange and the market coverage reaches 10,417 million. US $.
And as they comment on the market, there are two reasons to explain the turbulence that struck SQM. Firstly, there is a comprehensive discussion about which route lithium prices will take.
The auction on the stock exchange helped Nutrien reduce the tax to pay for the sale of 24% of SQM
"The market mistakenly sees the wrong price, and it is because lithium is sold with technical specifications from each buyer. Believing that lithium is an item is wrong ", explains an expert.
In fact, the biggest blow SQM has suffered since Tianqi's entry into the property occurred yesterday. The Canadian company Orocobre estimated a decrease of 13% in the mineral value in the fourth quarter and said it did not expect a recovery in the short term.
More specifically, the manufacturer's report states that the price of lithium carbonate in the quarter would reach $ 10,800 per Ton compared to the average of $ 12,470 per Tons between January and June.
SQM deletes US $ 645 million on the stock market after cutting in estimates of the price of mineral
This warning meant that the non-metallic mining company lost US $ 650 million on the stock market after a breakdown of more than 6% in Series B titles.
The second factor explaining the fall accumulated by SQM in the last three weeks corresponds to the delay in the company's new factory that hit the paper. However, the analyst describes that the problem is solved.
"They installed a new expansion line within the existing and in sync, they found this delay. This is already resolved," says the operator.