Chile - Brazil Trade 2023 Q3: Widening Deficit & Volatility
Key Market Takeaways: Chile - Brazil Trade
The bilateral trade relationship between Chile and Brazil is marked by a widening deficit and volatile demand shifts in 2023 Q3.
- Deficit Deepens: Chile’s trade deficit with Brazil hit $1.0B (imports: $2.11B > exports: $1.11B), driven by sharp declines in both exports (-11.75% YoY in September) and imports (-45.69% YoY).
- Resource-for-Resource Swap: Chile - Brazil trade statistics reveal a raw material exchange—Chile supplies copper (45.56% of exports) while Brazil dominates with mineral fuels (38.63% of imports).
- Strategic Vulnerability: High commodity concentration creates mutual dependence but exposes both to price swings and supply chain disruptions.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Chile-Brazil Trade Trend in Q3 2023
Chile Export Performance: Shipments to Brazil
- Total Volume: $1.11B in Q3 2023.
- Growth Trend & Context:
- YoY decline in August (-2.48%) and September (-11.75%), signaling weakening demand or competitive shifts.
- No trade news to contextualize the drop.
- Key Volatility: July saw a 25.47% MoM surge, followed by a -16.8% contraction in September.
Chile Import Performance: Sourcing from Brazil
- Total Volume: $2.11B in Q3 2023.
- Growth Trend & Context:
- Sharp YoY drops in August (-10.38%) and September (-45.69%), indicating reduced reliance or supply constraints.
- Key Volatility: August peaked with a 12.3% MoM rise, but September collapsed (-32.83% MoM).
Chile - Brazil Trade Balance & Market Dynamics
- Net Position: Trade deficit of $1.0B (Imports $2.11B > Exports $1.11B).
- Relationship Status: Chile remains heavily dependent on Brazilian imports, with a widening deficit driven by plunging exports.
Chile Import Trend from Brazil 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 732.77M | 7.96% | 0.0% |
| Aug | 822.93M | 12.3% | -10.38% |
| Sep | 552.73M | -32.83% | -45.69% |
| Total | 2.11B | - | - |
Chile Export Trend to Brazil 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 377.67M | 25.47% | 0.0% |
| Aug | 397.21M | 5.17% | -2.48% |
| Sep | 330.47M | -16.8% | -11.75% |
| Total | 1.11B | - | - |
Get Historical Chile Brazil Trade Records
Chile-Brazil Top Trading Products in Q3 2023
Chile Export Profile: What Does Chile Sell to Brazil
- Top Commodity: Copper (HS 74) dominates exports, accounting for 45.56% of total value.
- Demand Driver: Brazil relies on Chilean copper for industrial processing, likely in construction and electronics manufacturing.
- Concentration: The trade is highly concentrated, with copper alone representing nearly half of exports.
Chile Import Profile: What Does Chile Buy from Brazil
- Top Commodity: Mineral fuels (HS 27) lead imports, making up 38.63% of total value.
- Dependency Nature: Chile depends on Brazilian energy exports, indicating a strategic energy security link.
Chile - Brazil Trade Relationship Dynamics
- The Exchange Model: Resource-for-Resource Complementarity. Chile supplies copper (HS 74) while Brazil provides mineral fuels (HS 27), reflecting a raw material swap.
- Value Chain Position: Both countries trade low-value-added commodities, with neither holding a clear high-value position.
Import Analysis by Product: Brazil to Chile (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 27 | 814.52M | 38.63% |
| 02 | 272.28M | 12.91% |
| 87 | 222.55M | 10.56% |
| 84 | 145.41M | 6.90% |
| 39 | 80.58M | 3.82% |
| 85 | 71.70M | 3.40% |
| 48 | 51.54M | 2.44% |
| 23 | 38.83M | 1.84% |
| 76 | 26.55M | 1.26% |
| 17 | 24.64M | 1.17% |
Export Analysis by Product: Chile to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 74 | 503.61M | 45.56% |
| 03 | 189.44M | 17.14% |
| 26 | 70.98M | 6.42% |
| 29 | 61.84M | 5.59% |
| 08 | 50.29M | 4.55% |
| 22 | 44.39M | 4.02% |
| 31 | 19.23M | 1.74% |
| 25 | 16.98M | 1.54% |
| 28 | 13.60M | 1.23% |
| 15 | 12.84M | 1.16% |
Check Detailed Chile-Brazil Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Chile-Brazil trade relationship faces near-term headwinds, with declining exports and a widening deficit signaling structural vulnerabilities. Copper demand from Brazil may remain subdued due to slowing industrial activity, while Chile’s reliance on Brazilian mineral fuels exposes it to energy price volatility. Without intervention, the trade deficit could deepen further in Q4 2023, exacerbated by seasonal demand fluctuations. Traders should prepare for continued volatility, particularly in commodity-heavy exchanges.
Strategic Moves
- Diversify Export Markets: Chilean copper exporters must reduce dependence on Brazil by targeting emerging markets in Asia, where industrial demand is rising.
- Lock in Energy Contracts: Importers of Brazilian mineral fuels should negotiate long-term supply agreements to hedge against price swings and ensure stable energy costs.
- Boost Value-Added Exports: Chile should incentivize processing of raw copper (e.g., wires, alloys) to capture higher margins and reduce reliance on bulk commodity sales.
Frequently Asked Questions
How did Chile - Brazil trade perform in 2023 Q3?
Chile's exports to Brazil totaled $1.11B in Q3 2023, with YoY declines in August and September. Imports from Brazil reached $2.11B, showing sharp YoY drops in the same period.
What are the top exports from Chile to Brazil?
Copper (HS 74) dominates Chile's exports to Brazil, accounting for 45.56% of total export value.
What does Chile import from Brazil?
Mineral fuels (HS 27) lead Chile's imports from Brazil, comprising 38.63% of total import value.
What is the trade balance between Chile and Brazil?
Chile recorded a trade deficit of $1.0B with Brazil in Q3 2023, driven by higher imports ($2.11B) than exports ($1.11B). The deficit is widening due to plunging exports.
Chile - Brazil Trade 2023 Whole Year: Widening Deficit
Chile's trade deficit with Brazil hit $4.5B in 2023, fueled by copper-for-fuel exchanges. Explore Chile Brazil trade trends and top trading product data via yTrade.
Chile - Brazil Trade 2023 Q4: Persistent Deficit, Copper Demand
Chile's trade deficit with Brazil hit $970M in Q4 2023, driven by copper exports and fuel imports. Explore Chile-Brazil trade trends and top products via yTrade data.
