Brazil - Chile Trade 2023 Q3: Declining Volumes

Key Market Takeaways: Brazil - Chile Trade

The bilateral trade relationship between Brazil and Chile cooled in Q3 2023, with declining YoY trade volumes on both sides.

• Economic Pulse: Brazil maintained a $920M trade surplus with Chile ($2.03B exports vs. $1.11B imports), but both flows saw sustained YoY declines (-25.7% exports, -7.4% to -19.8% imports).
• Exchange Structure: Brazil - Chile trade statistics reveal a resource-for-resource complementarity, with Brazil exporting mineral fuels (40.55% share) and importing copper (41.34% share).
• Strategic Interdependence: The relationship hinges on raw material swaps, with neither country holding a clear high-value-add advantage in the top traded goods.

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

Brazil-Chile Trade Trend in Q3 2023

Brazil Export Performance: Shipments to Chile

• Total Volume: $2.03B in Q3 2023.
• Growth Trend & Context: YoY decline persisted across all months, averaging -25.7%, reflecting sustained demand weakness or competitive shifts. No policy disruptions were reported.
• Key Volatility: September saw a sharp MoM drop (-21.5%), the steepest monthly contraction in the quarter.

Brazil Import Performance: Sourcing from Chile

• Total Volume: $1.11B in Q3 2023.
• Growth Trend & Context: YoY declines moderated from -19.8% in August to -7.4% in September, suggesting a partial recovery. No news-driven shocks were noted.
• Key Volatility: July posted the strongest MoM growth (+18.5%), likely due to inventory rebuilding after H1 constraints.

Brazil - Chile Trade Balance & Market Dynamics

• Net Position: Brazil held a $920M trade surplus with Chile (Exports: $2.03B > Imports: $1.11B).
• Relationship Status: Brazil remains a net exporter, but declining YoY figures in both flows indicate cooling bilateral trade intensity.

Brazil Import Trend from Chile 2023 Q3 (Source: yTrade)**

Brazil Export Trend to Chile 2023 Q3 (Source: yTrade)**

Get Historical Brazil Chile Trade Records

Brazil-Chile Top Trading Products in Q3 2023

Brazil Export Profile: What Does Brazil Sell to Chile

• Top Commodity: Rank #1 export is Mineral fuels (HS 27) at 40.55% of total exports to Chile.
• Demand Driver: Chile uses these for industrial processing and energy needs.
• Concentration: Trade is moderately concentrated, with the top commodity holding a 40.55% share.

Brazil Import Profile: What Does Brazil Buy from Chile

• Top Commodity: Rank #1 import is Copper (HS 74) at 41.34% of total imports from Chile.
• Dependency Nature: Raw material dependency, as Brazil sources copper for industrial and manufacturing use.

Brazil - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Brazil exports mineral fuels (HS 27) while importing copper (HS 74), reflecting a swap of raw materials.
• Value Chain Position: Both countries trade in intermediate goods, with neither holding a clear high-value-add advantage based on the top products.

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

The Brazil-Chile trade relationship is expected to face continued headwinds in the near term, with the persistent YoY declines in both exports and imports signaling cooling demand and potential market saturation. The sharp MoM drop in Brazil’s September exports (-21.5%) and the partial recovery in imports (-7.4% YoY in September) suggest a period of consolidation rather than rapid rebound. Given the resource-for-resource complementarity (mineral fuels for copper), traders should anticipate volatility in commodity prices and demand shifts, particularly as global economic uncertainty persists. The Brazil-Chile trade forecast for Q4 2023 and early 2024 hinges on stabilizing raw material demand and avoiding further contraction in bilateral flows.

Strategic Moves

• Lock in Long-Term Contracts: With mineral fuels (HS 27) and copper (HS 74) dominating trade, Brazilian exporters and importers should secure fixed-term agreements to mitigate price volatility and ensure stable supply chains.
• Diversify Export Markets: Brazil’s heavy reliance on Chile for copper imports (41.34% of total) exposes it to supply risks. Traders must explore alternative sourcing from Peru or Zambia to reduce dependency.
• Optimize Logistics for Cost Efficiency: The YoY decline in trade volumes underscores the need for leaner operations. Exporters should renegotiate freight rates and streamline cross-border logistics to maintain competitiveness.

Frequently Asked Questions

How did Brazil - Chile trade perform in 2023 Q3?

Brazil's exports to Chile totaled $2.03B, with a YoY decline of -25.7%, while imports from Chile reached $1.11B, showing a moderated YoY decline.

What are the top exports from Brazil to Chile?

The top export from Brazil to Chile is Mineral fuels (HS 27), accounting for 40.55% of total exports.

What does Brazil import from Chile?

Brazil's top import from Chile is Copper (HS 74), making up 41.34% of total imports.

What is the trade balance between Brazil and Chile?

Brazil held a $920M trade surplus with Chile in Q3 2023, though bilateral trade intensity showed signs of cooling.