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Analysis and Studies - Country Analysis

Chile: a look at the market

By SkyMinder Sales Enablement Team October 25th 2024

Chile is a narrow country that stretches over 4,000 miles along the western coast of South America, yet its width averages only about 61 miles. The population is predominantly a blend of European and indigenous heritage, with around 40% of its people residing in the capital city, Santiago, and the country is rich in natural resources and biodiversity, making it notable for both its environmental beauty and economic potential.

Chile's history includes a rich tapestry of indigenous cultures, notably the Mapuche, before Spanish colonization began in the 16th century. It declared independence in 1810, achieving it fully in 1818 after years of conflict. The 19th century featured territorial expansion and economic growth, especially after the War of the Pacific. However, the country faced significant political upheaval in the 20th century, including a military coup in 1973 that led to a dictatorship under Augusto Pinochet. Chile returned to democracy in the late 20th century, shaping its contemporary identity.

The flag is composed of two horizontal bands of equal size: the upper band is white, and the lower band is red. On the hoist side of the flag, within the white band, there is a blue square, whose height matches that of the white band: this blue square contains a white five-pointed star centrally positioned, symbolizing a guiding force for progress and honor. Each color on the flag holds specific symbolism: blue represents the expansive sky, white signifies the snow-capped Andes mountains, and red commemorates the blood sacrificed in the pursuit of independence.

Chile has a high level of specialization in Halogens ($1.15B), Carbonates ($7.72B), Molybdenum Ore ($1.85B), Nitrites and Nitrates ($587M), and Pitted Fruits ($2.45B).

 

 

In 2022, Chile was the 44th in total exports, with a trade of $99B, and the 43rd in total imports, with a trade of $96.4B.

In 2022 the most exported product was Copper Ore, with a trade of $22.8B, followed by Refined Copper ($18.4B), Carbonates ($7.72B), Fish Fillets ($3.91B), and Raw Copper ($2.97B), exporting mostly to China (38.9%), United States (14%), Japan (7.5%), South Korea (6.19%), and Brazil (4.59%).

The graphic illustrates Chile's reliance on its rich mineral resources, especially copper, while also showcasing the diverse product offerings and the critical international partnerships that support its economic growth. The exports are heavily dominated by copper-related products, with copper ore leading the way and refined copper following, with a significant portion of these exports directed to China, highlighting the deep economic relationship between the two nations.

Other major markets include the United States, which plays a vital role in importing fish fillets and refined copper, while Japan and South Korea are also important players in the copper sector. Additionally, carbonates see a strong demand from China, further emphasizing its influence in multiple sectors.

  1. Copper Ore (23%): 68.3% China, 17.4% Japan, 4.11% South Korea, 3.64% India, 1.81% Spain, 1.69% Germany
  2. Refined Copper (18.6%): 41.9% China, 19.7% United States, 10.3% South Korea, 8.49% Brazil, 5.09% Chinese Taipei, 3.97% France, 2.05% Netherlands, 1.36% Spain
  3. Carbonates (7.8%): 74.9% China, 12.9% South Korea, 6.72% Japan, 1.66% United States, 1.47% United Kingdom
  4. Fish Fillets (3.95%): 69% United States, 12.4% Japan, 4.46% Mexico, 1.66% Canada,1% France, 1.04% Russia, 0.97% Colombia, 0.77% Brazil
  5. Raw Copper (3%): 50.6% China, 28.8% Canada, 12.4% South Korea, 3.66% Spain, 2.36% Poland, 1.89% Germany

Whereas the most imported product was Refined Petroleum, with a trade of $11.5B, ahead of Cars ($4.82B), Crude Petroleum ($4.64B), Delivery Trucks ($3.39B), and Petroleum Gas ($2.72B), importing mostly from China (25.8%), United States (22.4%), Brazil (9.51%), Argentina (5.3%), and Germany (3.09%).

This graphic highlights Chile's heavy reliance on foreign energy sources and vehicles, underscoring the significance of global trade connections in supporting its economy. The imports are led by refined petroleum, sourced primarily from the United States, which supplies an impressive 88.4% of imports, while China emerges as the largest trading partner overall.

The automotive sector reflects a diverse supply chain, with China accounting for 31.9% of car imports and Japan contributing 11.7%. Brazil dominates the crude petroleum market, and for delivery trucks, China is again a key supplier. Additionally, the majority of petroleum gas imports comes from the United States and Argentina.

  1. Refined Petroleum (12%): 88.4% United States, 6.7% Japan, 1.28% Peru, 0.63% Brazil, 0.56% Argentina
  2. Cars (5%): 31.9% China, 11.7% Japan, 11.3% Brazil, 9.91% South Korea, 7.36% India,4% United States, 4.04% Mexico, 3.07% Germany, 2.88% France, 2.68% Spain
  3. Crude Petroleum (4.81%): 68.9% Brazil, 19.6% Ecuador, 7.65% Angola, 2.09% Argentina, 1.59% United States
  4. Delivery Trucks (3.51%): 27.1% China, 13.2% United States, 12.9% Brazil, 11.2% Argentina, 7.81% Thailand, 4.86% Japan, 5.3% South Korea, 4.63% Mexico, 2.5% Germany, 2.26% Spain, 1.8% France
  5. Petroleum Gas (2.82%): 43.4% United States, 33.8% Argentina, 15.2% Equatorial Guinea, 3.77% Australia, 3.71% Trinidad and Tobago

Between 2021 and 2022 the fastest growing exporter was China, with an increase of $1.94B, ahead of South Korea ($1.28B), and Mexico ($383M).

 

 

 

  1. China: from $36.6B to $38.5B
  2. South Korea: from $4.85B to $6.13B
  3. Mexico: from $1.39B to $1.77B

Whereas the country with the fastest growth in imports was the United States, with an increase of $6.04B, followed by Brazil ($2.02B), and Argentina ($1.18B).

 

 

  1. United States: from $15.6B to $21.6B
  2. Brazil: from $7.14B to $9.17B
  3. Argentina: from $3.93B to $5.11B

Sources: 

https://oec.world/en

https://www.cia.gov/the-world-factbook/countries/