How did the Chilean chemical industry perform in 2023?

In 2023, Chile’s chemical exports saw a 5% decrease in terms of total amount compared to 2022, mainly due to price fluctuations, totaling approximately US$13 billion. Despite this decline, the chemical sector still accounted for 14% of all Chilean exports. On the import side, the decrease was even more pronounced, with a 30% drop, totaling around US$13.3 billion, and an 8% decrease in volume. How would you assess the current economic landscape of the global chemical industry and, more specifically, Chile’s situation?

Although the industry predicted a global recession, we do not see it materialized yet, leading us to believe we are experiencing a soft landing. In 2024, prices appear more stable, but logistical challenges persist, especially in regions like Asia and Europe. We anticipate a challenging yet stable year ahead, with tighter economic conditions but no severe downturns. What work lines has ASIQUIM focused on recently?

One of our main focuses at ASIQUIM this year is promoting Responsible Care among our partners and the broader community. We are making Responsible Care mandatory for our members in 2025.

Another line we are working on is highlighting the role of chemistry and communicating where it intersects with daily activities. There is often a disparity in understanding; if everyone understood the impact and importance of chemistry, matters would be simplified significantly. Our mission is to reach out to people and demonstrate the positive effects of good chemistry.

Additionally, we actively participate in developing regulations alongside the government and authorities to support new projects. Chile’s future is envisioned in the green hydrogen and lithium sectors. However, achieving this vision depends heavily on a long-term state policy that facilitates permit approvals and the development of large-scale projects. What are some synergies between the Chilean mining and chemical industries?

Mining is crucial for transitioning to sustainable technologies, although not everyone grasps this. The same misunderstandings apply to the chemical industry. Without the chemical and mining industries, modern existence as we know it would be impossible; they are the backbone of all technological advancements and everyday products.

All mining projects require chemical solutions. Even a slight improvement in efficiency can make a significant difference, given the large production volumes. Moreover, as major mining operations deplete their ore grades, chemistry becomes essential to keep mines operational.

By collaborating closely with the mining industry, the chemical industry can have several synergies to leverage. How can Chile benefit from nearshoring or friendshoring?

Many countries have become aware of China’s aggressive export policies, and we have witnessed the US imposing tariffs on Chinese goods, because its currency policies and export incentives create asymmetric opportunities.

Despite incentives, a quarter of mainland China’s listed companies are unprofitable, flooding global markets with excess capacity and undercutting competitors. This predatory pricing devastates value-added industries in heavily regulated countries, where governments demand more from businesses but fail to protect them from unequal competition.

As a result, many countries are protecting their jobs and industries from these threats. Meanwhile, Mexico has begun imposing anti-dumping measures on various chemical products, and Brazil has also been taking proactive actions. In Chile, after many requests, the government is now making timid moves with steel regarding Chinese dumping prices.

The escalating trade wars have led the West to reassess its supply chains, looking not only to neighboring countries but also to alternative trading partners in order to reduce reliance on any single provider, which now probably has an extra duty or tariff and also reduce supply and geopolitical risk.

The concept of nearshoring has gained momentum, with industries relocating to the US, benefiting Mexico. Although Chile may seem geographically distant from these dynamics, our practical proximity is evident in shipping terms. Being a major exporter of copper and lithium, Chile imports numerous products, often leaving ships departing without full cargo.

Despite the distance, our logistical proximity to many countries, due to return freight rates, positions Chile as an attractive friendshoring option.

Moreover, Chile stands out as a historically stable country, and it has an open economy with over 33 free trade agreements, enabling competitive sourcing of raw materials and access to the global market at competitive prices. Chile is well-positioned to supply countries protecting themselves from less regulated competitors.