SQM downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded SQM to Neutral from Overweight with a price target of $44, down from $55. The firm sees lithium chemical prices trading at the low and narrow range of $10-11k/t LCE for an extended period of time of three years. The recent 23% SQM rally over the last 30 days was fueled by a broad China stock market rally and improving sentiment, the analyst tells investors in a research note. However, JPMorgan thinks a lithium price rally should be short-lived, once there is significant dormant capacity that could come quickly to the market, “impairing prices to have a sustainable rally.”