Chile Industry Sectors

Chile expects its industrial output to grow by 5% to 6% in 2010, after plummeting by 8.8% last year due to the global financial crisis. Industrial output rose by 1.1% in December 2009 and industrial sales increased 1.2% in the same month, but fell by 6.7% for the year 2009. Chile’s industry sectors took a beating in 2009 due to high exposure to international trade.[br]

Chile expects its industrial output to grow by 5% to 6% in 2010, after plummeting by 8.8% last year due to the global financial crisis. Industrial output rose by 1.1% in December 2009 and industrial sales increased 1.2% in the same month, but fell by 6.7% for the year 2009. Chile’s industry sectors took a beating in 2009 due to high exposure to international trade.[br]

Chile Industry Sectors: Copper 

Chile’s copper production grew by 0.8% to 5.41 million tons in 2009, as compared to 2008, while the December 2009 production grew by 3.8% YOY to 501,950 tons. The December growth was attributed to higher copper in concentrate output of 231, 202 tons, up 14.5% from the December 2008 levels.

 

Chile Industry Sectors: Oil and Gas 

Chile is expected to account for 4.55% of Latin America’s regional oil demand by 2014. Chile’s oil exports had fallen to 1.92 million b/d in 2009, but are expected to recover to 2.17 million b/d by 2014. The principal export economies will be Brazil, Venezuela, Ecuador and Mexico. The Chilean oil industry can benefit from the forecast of an increase in oil consumption of 25.5% from 2009 to 2019. The demand is expected to rise from 345,000b/d to 433,000b/d. Gas production is expected to reach 1.8 bcm in 2010, before settling down to 1.1 bcm by 2019.

Chile Industry Sectors: Automobile

The Chilean automotive industry witnessed a slump in sales of new passenger cars and LCVs by 29.4% in Q4 2008 as a result of the economic crisis. The slump continued for much of 2009, although the Chilean auto sector is expected to see a recovery in 2010. However, industry developments and the introduction of new vehicles, such as the Indian electric car Reva in Santiago, is expected to arrest the slump in sales. In addition, carmakers from China continue to see the Chilean market favorably. For much of 2008, brands like Changan, Chery, Great Wall, Hafei, Lifan and Donfeng dominated the Chinese exports to Chile.[br]

 

The February 2010 earthquake in Chile took a heavy toll on its copper industry. According to Reuters, the earthquake affected one-fifth of the nation’s copper production. Mines like Los Bronces and El Soldado, which produce 280,000 tons of copper every year (combined), were closest to the epicenter of the quake. The oil industry was also affected when major oil refining plants were shut down and in the process took more than 230,000 b/d off the market. In addition, Chile’s fish and wine industries were heavily impacted by the quake, resulting in heavy loss of infrastructure, revenue and production.