Brazil - Chile Trade 2023 Q2: Surplus & Commodity Reliance

Key Market Takeaways: Brazil - Chile Trade

The bilateral trade relationship between Brazil and Chile shows volatile growth but a strong surplus for Brazil in Q2 2023.

• Economic Pulse: Brazil posted a $990M surplus ($2.00B exports vs. $1.01B imports), though Chile’s imports from Brazil contracted sharply (-10.79% to -31.69% YoY).
• Exchange Structure: Brazil - Chile trade statistics reveal a resource-for-resource exchange—Brazil supplies mineral fuels (46% of exports) while Chile provides copper (35% of imports).
• Strategic Interdependence: The partnership is highly complementary but reliant on low-value-added commodities, with no clear high-value chain positioning.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Brazil-Chile Trade Trend in Q2 2023

Brazil Export Performance: Shipments to Chile

• Total Volume: $2.00B in Q2 2023.
• Growth Trend & Context:
  • Volatile YoY performance: May surged (+50.25%), but April (-21.43%) and June (-18.04%) contracted sharply.
  • Key Volatility: May’s 50.97% MoM spike contrasts with June’s -11.85% drop, signaling erratic demand or supply adjustments.

Brazil Import Performance: Sourcing from Chile

• Total Volume: $1.01B in Q2 2023.
• Growth Trend & Context:
  • Steep YoY declines: April (-10.79%), May (-30.45%), June (-31.69%)—consistent demand contraction.
  • Key Volatility: June hit the lowest monthly value ($303.64M), extending a three-month downtrend.

Brazil - Chile Trade Balance & Market Dynamics

• Net Position: $990M Surplus (Exports $2.00B > Imports $1.01B).
• Relationship Status: Brazil maintains a strong net exporter role, but Chile’s shrinking imports may reflect weakening bilateral demand or competitiveness shifts.

Brazil Import Trend from Chile 2023 Q2 (Source: yTrade)**

Brazil Export Trend to Chile 2023 Q2 (Source: yTrade)**

Get Historical Brazil Chile Trade Records

Brazil-Chile Top Trading Products in Q2 2023

Brazil Export Profile: What Does Brazil Sell to Chile

• Top Commodity: Rank #1 export is HS 27 (Mineral fuels, oils) at 46.02% of total exports to Chile.
• Demand Driver: Chile imports these for energy needs, likely refining or industrial use.
• Concentration: Trade is highly concentrated, with HS 27 alone accounting for nearly half of exports.

Brazil Import Profile: What Does Brazil Buy from Chile

• Top Commodity: Rank #1 import is HS 74 (Copper and articles thereof) at 34.71% of total imports from Chile.
• Dependency Nature: Reflects raw material dependency, as Brazil sources copper for industrial or construction sectors.

Brazil - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity—Brazil supplies energy (HS 27) while Chile provides metals (HS 74).
• Value Chain Position: Both sides trade low-value-added commodities, with neither holding a clear high-value position.

Import Analysis by Product: Chile to Brazil (Source: yTrade)

Export Analysis by Product: Brazil to Chile (Source: yTrade)

Check Detailed Brazil-Chile Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade surplus with Chile is likely to persist in the near term, but volatility in export demand and Chile’s declining imports signal potential risks. The erratic performance of Brazil’s exports—marked by sharp monthly swings—suggests underlying supply chain or demand instability, particularly for mineral fuels (HS 27). Meanwhile, Chile’s weakening appetite for Brazilian goods, coupled with its own export slump in copper (HS 74), points to broader economic headwinds. Traders should brace for a period of consolidation, with growth contingent on stabilizing commodity markets and bilateral demand.

Strategic Moves

• Diversify Export Markets for HS 27: Brazil’s overreliance on Chile for mineral fuel exports exposes it to demand shocks. Exporters must aggressively target alternative markets in Latin America or Asia to mitigate volatility.
• Lock in Long-Term Copper Contracts: With Chile’s copper exports to Brazil in decline, Brazilian industrial buyers should negotiate fixed-price agreements to secure supply and hedge against future price fluctuations.
• Invest in Trade Data Analytics: Given the erratic monthly trade patterns, firms must adopt real-time monitoring tools to anticipate demand shifts and adjust shipments dynamically.

Frequently Asked Questions

How did Brazil - Chile trade perform in 2023 Q2?

Brazil exported $2.00B to Chile but faced volatile growth, while imports from Chile dropped sharply to $1.01B, reflecting consistent demand contraction.

What are the top exports from Brazil to Chile?

Mineral fuels and oils (HS 27) dominated Brazil’s exports, accounting for 46.02% of total shipments to Chile.

What does Brazil import from Chile?

Copper and articles thereof (HS 74) were the top import, making up 34.71% of Brazil’s total imports from Chile.

What is the trade balance between Brazil and Chile?

Brazil maintained a $990M surplus in Q2 2023, though Chile’s declining imports suggest weakening bilateral demand.