Latest situation in Chile November 2023

According to the regular report of economy (November 2023) published by the embassy of Japan in Chile, the latest situation of the country can be summarized as below.:

  • Mining

SONAMI (Chilean Nacional Society of Mining) announced copper production forecasts.
According to the announcement, copper production in 2023 was expected to decline from 5.33 million tons (in 2022) to approximately 5.25 million tons, mainly due to the decline in ore grade and technical issues at some deposits.
However, it’s expected to increase to approximately 5.55 million tons in 2024, as if to catch up for the delay caused by the pandemic.
Copper prices are predicted to be between USD3.7-3.9 per pound. (According to the same economic situation report, the international copper price at the end of November 2023 marked 3.7% comparing to the end of the previous month, which was on an upward trend.)
While a surplus in the copper market is expected in 2024, there are concerns about the impact od the real estate crisis and local governments’ high debt in China, that accounts for 57% of the world’s copper consumption.

  • Economics

The economic activity index in October recorded 0.3%. In the mining section recorded -4.0%.
The mining production index in the same month was -6.8%, and copper production decreased by 4.4%.
The export amount in November was 7.73 billion dollars (-4.0%), of which mining products raised 4.69 billion dollars (-3.3%, 60.6% of the total), of which copper raised 3.96 billion dollars (3.8%, 84.4% of the total mining export value).
On the other hand, import value in the same month was 6.44 billion dollars (-15.4%), and the trade balance was a surplus of $1.28 billion.
*Percentages from the same month of the previous year

The amount of trade with China, Japan, and South Korea (October) resulted as below:

With China: exportation 3.20 billion (-4.4%), importation 1.67 billion (8.0%), total amount of trade 4.87 billion (-0.5%)
With Japan: exportation 510 million (-32.2%), importation 340 million (64.8%), total amount of trade 850 million (-11.4%)
With South Korea: exportation 410 million (-7.6%), importation 90 million (-10.6%), total amount of trade 500 million (-8.2%)
*Dollars, comparing to the same month of the previous year

Reference:The regular report of economy (November 2023), from the Embassy of Japan in Chile, Department of Economy.