SQM Surges 8.72% on $220M Volume, Ranks 466th in Trading Activity as Lithium Supply Disruptions Drive Momentum

Sociedad Química y Minera de Chile (SQM) surged 8.72% on August 11, 2025, with a trading volume of $0.22 billion, marking a 60.23% increase from the previous day. The stock ranked 466th in trading volume among the day’s equities, reflecting heightened market activity amid sector-specific developments.

The rally was driven by a supply-side disruption following the closure of Contemporary Amperex Technology Co. Ltd.’s (CATL) Jiangxi lithium mine, a facility accounting for 6% of global lithium production. This shutdown, coupled with broader anti-inflation policies in China targeting overcapacity, triggered a 3% rise in lithium carbonate spot prices to 75,500 yuan/ton. Analysts noted that SQM, as a key player in the lithium supply chain, benefits from tightened global supply dynamics, particularly from its Chilean operations.

Market participants are monitoring potential regulatory extensions to other Yichun mines, which contribute an additional 5% of global supply. SQM’s stock reached a 52-week high of $47.36, aligning with a broader lithium sector rally that saw peers like Albemarle (ALB) and Tianqi Lithium (002460.SZ) surge by 7.64% and 19%, respectively. The sector’s synchronized movement underscores interconnectedness among lithium producers amid supply-side shocks.

Options activity intensified as traders positioned for volatility. The 20250815C42.5 call option saw a 205% price change ratio, reflecting aggressive bullish sentiment. Technical indicators, including a 16.5% premium to the 200-day moving average and a neutral RSI of 59.3, suggest continued momentum. High-liquidity options like 20250815C42.5 and 20250919C45 remain focal points for capitalizing on near-term price swings.

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