Chile’s SQM to halve MOP sales in 2025

Market: Fertilizers
06/03/25

Chilean producer SQM expects its potash sales to fall by 50pc this year as it continues to prioritise lithium at the expense of MOP at its Salar de Atacama site, and diverts more potash for NOP production.

SQM sold 695,000t of potash in 2024, up from 543,000t in 2023, suggesting 2025 sales could fall to 350,000t.

Sales in 2024 exceeded expectations thanks to strong demand in Brazil, Europe and India, as well as higher than anticipated sales of SOP from third parties. In November, the company revised down its 2024 MOP sales forecast by 30,000t to 620,000t, having upped its forecast to 650,000t in the previous quarter.

Despite higher sales volumes, potash revenue fell to $271mn in 2024 from $279mn in 2023 because of lower average sales prices.

Fourth-quarter revenue hit $66mn, up from $51mn a year earlier, as sales volumes rose to 166,000t from 113,000t.

Sales from SQM's specialty plant nutrition business were up by 17pc last year, at 982,900t. NOP and sodium potassium nitrate sales accounted for 534,000t of this, up by 20pc.

Revenue from the speciality plant nutrition business hit $942mn last year, up from $914mn in 2023. Gains were capped by a 12pc decline in average sales prices — to $958/t from $1,088/t.

SQM sees the global NOP market growing by 4-5pc this year, and expects its NOP sales volumes to rise in line with or slightly above this level. It expects prices to be similar to those in the second half of 2024.

By Aidan Hall

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