UPDATE 1-Chile's SQM sees stable lithium prices in coming months - executive

(New throughout, adds details and background)

By Daina Beth Solomon

Feb 29 (Reuters) -

Chile's SQM, the world's second-largest lithium producer, expects stable lithium prices over the next three months and strong demand through the year, executives said in a call with analysts on Thursday.

The company on Wednesday said its fourth-quarter net profit fell more than 80% from a year earlier, as prices for the battery metal key to electric vehicles continued to slide.

Global supplies for lithium outpaced demand over 2023, fuelling a glut that has dragged prices and caused producers such as Albemarle, the world's largest supplier, to cut jobs and pause expansions.

SQM executives said they did not have indications of any major lithium pricing shifts to come in the next three months, and were optimistic for the second half of the year.

Sales volumes are also expected to be higher in the second part of the year, they noted, along with first quarter volumes expected to outdo the same period from a year before.

The company on Wednesday forecast volumes to rise 5%-10% over the year. (Reporting by Daina Beth Solomon and Aida Pelaez-Fernandez; Editing by Valentine Hilaire and David Gregorio)