Brazil - Chile Trade 2024 Q1: Volatile Swings

Key Market Takeaways: Brazil - Chile Trade

The bilateral trade relationship between Brazil and Chile showed volatile swings in Q1 2024, with eroding momentum by March.

• Brazil holds a $490M trade surplus, with exports ($1.57B) outpacing imports ($1.08B), but both flows turned negative YoY by March.
• Brazil - Chile trade statistics reveal a resource-for-resource exchange: Brazil supplies fuel (36% of exports) while importing copper (37% of imports), highlighting raw material interdependence.
• The partnership is structurally complementary, with both nations trading critical industrial inputs but lacking deeper value-chain integration.

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

Brazil-Chile Trade Trend in Q1 2024

Brazil Export Performance: Shipments to Chile

• Total Volume: $1.57B in Q1 2024.
• Growth Trend & Context:
  • YoY swings were volatile: +1.27% in January, +14.92% in February, then a sharp -44.42% collapse in March.
  • No specific trade news to explain the extreme March contraction.
• Key Volatility: February saw a 6.7% MoM surge, but March plummeted -29.13% MoM—the steepest monthly drop.

Brazil Import Performance: Sourcing from Chile

• Total Volume: $1.08B in Q1 2024.
• Growth Trend & Context:
  • YoY growth turned negative (-15.87%) by March after a weak +0.07% in February.
• Key Volatility: March imports fell -4.63% MoM, compounding a -6.88% drop in January.

Brazil - Chile Trade Balance & Market Dynamics

• Net Position: Brazil holds a trade surplus of $490M (Exports $1.57B > Imports $1.08B).
• Relationship Status: Brazil remains a net exporter to Chile, but Q1 saw eroding momentum in both directions by March.

Brazil Import Trend from Chile 2024 Q1 (Source: yTrade)**

Brazil Export Trend to Chile 2024 Q1 (Source: yTrade)**

Get Historical Brazil Chile Trade Records

Brazil-Chile Top Trading Products in Q1 2024

Brazil Export Profile: What Does Brazil Sell to Chile

• Top Commodity: Rank #1 export is Mineral Fuels (HS 27), accounting for 36.14% of total exports to Chile.
• Demand Driver: Chile uses these for industrial processing and energy needs, reflecting reliance on Brazil's fuel exports.
• Concentration: Trade is moderately concentrated, with the top commodity holding over a third of the share but no single category exceeding 50%.

Brazil Import Profile: What Does Brazil Buy from Chile

• Top Commodity: Rank #1 import is Copper (HS 74), making up 37.48% of total imports from Chile.
• Dependency Nature: Brazil depends on Chile for raw materials like copper, indicating a raw material dependency for industrial inputs.

Brazil - Chile Trade Relationship Dynamics

• The Exchange Model: Resource-for-Resource Complementarity. Brazil exports fuel (HS 27) to Chile, while importing copper (HS 74), highlighting a swap of critical raw materials.
• Value Chain Position: Both countries trade intermediate goods, with neither clearly holding a higher value-add position. The exchange is dominated by industrial inputs.

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 faces near-term volatility but retains long-term potential. The sharp March 2024 contraction in Brazilian exports to Chile (-44.42% YoY) suggests a cooling demand phase, likely tied to Chile’s industrial slowdown or inventory adjustments. However, the structural complementarity—Brazil’s fuel (HS 27) for Chile’s copper (HS 74)—creates a resilient foundation. Expect Q2 trade volumes to stabilize at lower levels before recovering in H2 2024, driven by renewed industrial activity and potential commodity price rebounds. Traders should monitor Chile’s energy policies and Brazil’s copper demand for early signals of rebound timing.

Strategic Moves

• Lock in Fuel Supply Contracts: Brazilian exporters of mineral fuels (HS 27) should negotiate multi-quarter agreements with Chilean buyers to mitigate spot-market volatility, leveraging Chile’s persistent energy dependency.
• Diversify Copper Sourcing: Brazilian manufacturers reliant on Chilean copper (HS 74) must scout alternative suppliers (e.g., Peru or Zambia) to reduce concentration risk amid Chile’s export fluctuations.
• Accelerate Trade Data Monitoring: Both nations’ trade agencies should deploy real-time export/import dashboards to detect sudden swings (like March’s collapse) and trigger contingency plans faster.

Frequently Asked Questions

How did Brazil - Chile trade perform in 2024 Q1?

Brazil's exports to Chile totaled $1.57B in Q1 2024, with volatile YoY growth, while imports from Chile reached $1.08B, showing a negative trend by March.

What are the top exports from Brazil to Chile?

The top export from Brazil to Chile is Mineral Fuels (HS 27), accounting for 36.14% of total exports.

What does Brazil import from Chile?

Brazil's top import from Chile is Copper (HS 74), making up 37.48% of total imports.

What is the trade balance between Brazil and Chile?

Brazil recorded a trade surplus of $490M with Chile in Q1 2024, though momentum weakened by March.