Chile - Brazil Trade 2023 Q4: Persistent Deficit, Copper Demand
Key Market Takeaways: Chile - Brazil Trade
The bilateral trade relationship between Chile and Brazil showed mixed growth with a persistent trade deficit in Q4 2023.
- Economic Pulse: Chile posted a $970M trade deficit with Brazil, importing $2.16B (declining YoY) while exporting $1.19B (partially offset by strong copper demand).
- Exchange Structure: The Chile - Brazil trade statistics reveal a resource-for-resource complementarity—Chile supplies copper (41% of exports) while Brazil dominates with mineral fuels (39% of imports).
- Strategic Interdependence: Energy security ties (Brazil’s fuel exports) and industrial reliance (Chile’s copper) anchor this relationship, though both sides trade low-value-added commodities.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Chile-Brazil Trade Trend in Q4 2023
Chile Export Performance: Shipments to Brazil
- Total Volume: $1.19B in Q4 2023.
- Growth Trend & Context:
- YoY growth was strong in October (+17.27%) and December (+16.35%), offsetting a flat November (+0.23%).
- No specific trade news to explain trends.
- Key Volatility: November saw a -10.17% MoM drop, the sharpest decline in the quarter.
Chile Import Performance: Sourcing from Brazil
- Total Volume: $2.16B in Q4 2023.
- Growth Trend & Context:
- YoY contractions persisted throughout the quarter, steepest in December (-28.82%).
- No news to contextualize the downturn.
- Key Volatility: December imports plummeted -29.76% MoM, the lowest monthly value ($555.77M).
Chile - Brazil Trade Balance & Market Dynamics
- Net Position: Trade deficit of $970M (Imports exceeded exports).
- Relationship Status: Chile remains a net importer from Brazil, with reliance on Brazilian goods outweighing export demand.
Chile Import Trend from Brazil 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 808.92M | 46.35% | -4.29% |
| Nov | 791.23M | -2.19% | -8.85% |
| Dec | 555.77M | -29.76% | -28.82% |
| Total | 2.16B | - | - |
Chile Export Trend to Brazil 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 424.39M | 28.42% | 17.27% |
| Nov | 381.22M | -10.17% | 0.23% |
| Dec | 383.35M | 0.56% | 16.35% |
| Total | 1.19B | - | - |
Get Historical Chile Brazil Trade Records
Chile-Brazil Top Trading Products in Q4 2023
Chile Export Profile: What Does Chile Sell to Brazil
- Top Commodity: Copper (HS 74) dominates at 41.23% of total exports.
- 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 exceeding 40% share.
Chile Import Profile: What Does Chile Buy from Brazil
- Top Commodity: Mineral fuels (HS 27) lead at 38.75% of imports.
- Dependency Nature: Energy security dependency, as Brazil supplies critical oil and gas products.
Chile - Brazil Trade Relationship Dynamics
- The Exchange Model: Resource-for-Resource Complementarity. Chile exports copper (industrial raw material) while importing energy (mineral fuels) from Brazil.
- Value Chain Position: Both countries trade low-value-added commodities, but Chile’s copper exports suggest slightly higher industrial utility.
Import Analysis by Product: Brazil to Chile (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 27 | 835.53M | 38.75% |
| 87 | 316.88M | 14.70% |
| 02 | 213.45M | 9.90% |
| 84 | 98.08M | 4.55% |
| 17 | 78.08M | 3.62% |
| 39 | 77.08M | 3.58% |
| 48 | 51.28M | 2.38% |
| 85 | 41.89M | 1.94% |
| 23 | 40.10M | 1.86% |
| 89 | 29.65M | 1.38% |
Export Analysis by Product: Chile to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 74 | 490.24M | 41.23% |
| 03 | 209.80M | 17.65% |
| 29 | 110.46M | 9.29% |
| 26 | 64.12M | 5.39% |
| 22 | 49.99M | 4.20% |
| 08 | 49.42M | 4.16% |
| 15 | 27.56M | 2.32% |
| 31 | 19.13M | 1.61% |
| 28 | 18.06M | 1.52% |
| 39 | 16.42M | 1.38% |
Check Detailed Chile-Brazil Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Chile’s trade with Brazil is expected to remain volatile in the near term, driven by fluctuating commodity demand and energy dependencies. While copper exports to Brazil may sustain growth due to industrial demand, Chile’s heavy reliance on Brazilian mineral fuels leaves it exposed to supply shocks and price swings. The persistent trade deficit signals a need for structural adjustments, particularly as Brazil’s import contraction suggests weakening demand. Traders should prepare for uneven performance, with potential upside in copper but downside risks in energy imports.
Strategic Moves
- Diversify Energy Suppliers: Reduce dependency on Brazilian mineral fuels by securing alternative sources, such as LNG from the U.S. or regional partners, to mitigate supply volatility.
- Lock in Copper Contracts: Chilean exporters should negotiate long-term agreements with Brazilian industrial buyers to stabilize revenue streams amid fluctuating demand.
- Boost Non-Copper Exports: Expand Chile’s export basket by promoting agricultural and processed goods to Brazil, leveraging trade agreements to reduce overreliance on copper.
Frequently Asked Questions
How did Chile - Brazil trade perform in 2023 Q4?
Chile's exports to Brazil totaled $1.19B, with strong YoY growth in October and December. Imports from Brazil reached $2.16B, but saw persistent YoY contractions, steepest in December (-28.82%).
What are the top exports from Chile to Brazil?
Copper (HS 74) dominates Chile's exports to Brazil, accounting for 41.23% of total shipments, driven by Brazil's industrial processing needs.
What does Chile import from Brazil?
Mineral fuels (HS 27) lead Chile's imports from Brazil, making up 38.75% of total imports, reflecting Chile's energy security dependency on Brazilian oil and gas.
What is the trade balance between Chile and Brazil?
Chile recorded a trade deficit of $970M with Brazil in Q4 2023, as imports of Brazilian goods significantly outweighed exports.
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