Chemicals in Chile Global vs Local Outlook Analysis¶
Global vs Local Outlook Analysis¶
Global vs Local outlook¶
The chemical industry in Chile presents a fascinating interplay between global forces and unique local characteristics, shaping its outlook. Globally, the chemical industry is influenced by factors such as fluctuating commodity prices, increasing demand for sustainable solutions, evolving international regulations, and the strategies of multinational corporations. Locally, Chile's outlook is intrinsically tied to its abundant natural resources, particularly minerals like lithium, iodine, and nitrates, and the significant demands from its dominant mining and agricultural sectors.
The global demand for resources like lithium strongly influences the local outlook for major players like SQM. [Source: provided context] While global record sales volumes were achieved in 2024, the significant decrease in global lithium prices negatively impacted SQM's revenue, highlighting the direct exposure of the local industry to international market volatility. [Source: provided context, Bolsamania - Economía.- La productora chilena SQM registra pérdidas de 377 millones en 2024] Similarly, Molymet's performance is linked to global molybdenum prices and supply, which also saw a decline in revenue in 2024. [Source: provided context, Molymet - 2024 Report] This demonstrates that despite having a local stronghold in resource extraction, the financial outlook for these segments is heavily dictated by global market conditions.
Conversely, the local demand from key Chilean industries provides a stable base and specific growth drivers. The mining sector's consistent need for explosives and industrial gases underpins the operations of companies like Enaex, Linde, and Air Products (Indura). Enaex's growth in 2024 was supported by local mining demand and strategic international expansion, showing a blend of local and global influence. [Source: provided context, La Tercera - Ingresos y ganancias de Enaex crecen en 2024] The significant size and projected growth of the Chilean crop protection chemicals market, driven by the agricultural sector, demonstrate a strong local demand influencing multinational strategies (Bayer, BASF) and supporting local players (Bio Insumos Nativa). [Source: Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report, Sumitomo Corporation - Sumitomo Corporation invests in Chilean biocontrol manufacturing company Bio Insumos Nativa]
Regulatory trends, while often influenced by global movements like REACH (as seen with Chile's Decree 57), are implemented at the local level and create unique compliance challenges and costs for all players, both domestic and international. [Source: CIRS Group - Chile Launched Second Round of Chemical Registration Under Its "REACH" System, Global Product Compliance - ACTIONABLE SUMMARY CHILEAN CHEMICAL CONTROL REGULATION (DECREE 57)] Local infrastructure and logistical complexities, stemming from Chile's geography, pose specific operational challenges that differ from global supply chain norms and require specialized local expertise from distributors and logistics providers. [Source: DACHSER - DACHSER Chem Logistics, Noatum Logistics - Integrated logistics solutions for the Chemical Industry, Mecalux.cl - Los retos de almacenar productos químicos]
The increasing global focus on sustainability is strongly influencing the local outlook. There is a growing demand for greener chemicals from Chilean end-users, particularly in mining (e.g., Codelco using Enaex's blue ammonium nitrate) and agriculture (demand for biocontrol). [Source: AméricaEconomía - Chilean Codelco to use explosives with 40% less carbon footprint, Sumitomo Corporation - Sumitomo Corporation invests in Chilean biocontrol manufacturing company Bio Insumos Nativa] This global trend is creating opportunities for local innovation and investment in sustainable chemical production and application, becoming a critical factor in the local competitive landscape.
In summary, the Chilean chemical industry's outlook is a function of leveraging its unique local resource advantages and serving robust domestic industries, while simultaneously navigating the significant impacts of global commodity price volatility, international competition from multinational players, and the increasing imperative for environmental sustainability which drives both global and local strategic shifts. The ability of players to manage global market risks, adapt to local regulatory specifics, overcome logistical hurdles, and invest in sustainable practices will be key determinants of success in the local market.
Trends detailing¶
Here are tables detailing key trends based on the provided information for the Chilean chemicals industry, primarily focusing on recent performance (2023-2024) and market projections.
Key Player Performance Trends (2023 vs 2024)
| Player Name | Volume Trend (2023 vs 2024) | Revenue Trend (2023 vs 2024) | Notes |
|---|---|---|---|
| SQM | Mixed: Increased sales volumes in most business lines, including record levels for lithium and iodine in 2024. Potash sales volume increased 2023 to 2024 but projected to decrease significantly in 2025. | Significant Decline (39.4%) from US$7,467.5M (2023) to US$4,528.8M (2024). [Source: provided context, Companies Market Cap - Sociedad Química y Minera (SQM) - Revenue, Stock Analysis - Sociedad Química y Minera de Chile S.A. Revenue 2015-2024] | Decrease in revenue mainly due to lower global lithium prices, despite higher volumes for some products. Anticipates lower average lithium prices and decreased potash sales in 2025. [Source: provided context, Bolsamania - Economía.- La productora chilena SQM registra pérdidas de 377 millones en 2024, Argus Media - Chile's SQM to halve MOP sales in 2025] |
| Molymet | Molybdenum product volume decreased from 120M lbs (2023) to 111M lbs (2024). Rhenium volume estimated stable 2024-2026. [Source: provided context, Molymet - 2024 Report] | Decline (16.6%) from US$2,475M (2023) to US$2,064M (2024). [Source: provided context, Molymet - 2024 Report] | Revenue decrease driven by lower average global molybdenum prices and reduced molydenite production from suppliers. Gross profit margin increased in 2024. [Source: provided context, Molymet - 2024 Report, Feller Rate - MOLYMET - MOLIBDENOS Y METALES S.A.] |
| Enaex | Physical sales volume increased by 7.2% in H1 2024 year-on-year. Consolidated physical sales grew outside Chile in 2024. [Source: provided context, CMF - ANALISIS RAZONADO CONSOLIDADO (Enaex)] | Increase (4%) from US$1,848.44M (2023) to US$1,916.0M (2024). [Source: provided context, La Tercera - Ingresos y ganancias de Enaex crecen en 2024] | Revenue growth supported by diversification into markets outside Chile. Results influenced by ammonia prices. [Source: provided context, La Tercera - Ingresos y ganancias de Enaex crecen en 2024] |
| Bayer | Volume data specific to Chile not available. Global Crop Science sales volume decreased in 2023. [Source: Bayer PACA 2023] | Global Group Sales decreased in 2023. [Source: enFarma - Bayer cumple con las previsiones ajustadas] Crop Science segment global sales decreased in 2023 and 2024. [Source: Bayer PACA 2023] | Facing global challenges in Crop Science, including litigation and cost-saving measures. Expected challenging financial performance globally in 2025. [Source: Forbes Chile - Bayer realizará despidos sustanciales] |
| BASF | Volume data specific to Chile not available. | Global Sales (Jan-Sep 2024) EUR 49,403M. Global EBITDA before special items increased in 2024. [Source: Corresponsables - El grupo químico alemán BASF ganó un 15% más en los primeros nueves meses de 2024] | Global performance influenced by market conditions. Implementing cost reductions in Europe. Expects global EBITDA to increase in 2025. [Source: Corresponsables - El grupo químico alemán BASF ganó un 15% más en los primeros nueves meses de 2024, Portal Innova - BASF muestra su resiliencia dentro de un entorno de mercado difícil] |
| Linde | Volume data specific to Chile not available. Holds significant market share (~77% combined with Air Products/Indura) in Chile. [Source: provided context] | Global Revenue approx. US$33B (2023). (Chile-specific revenue not available) | Accused of market collusion in Chile (2019-2021). Significant operational presence in Chile. [Source: provided context] |
| Air Liquide | Volume data specific to Chile not available. Major player in the Chilean gas market. [Source: provided context, Air Liquide - Air Liquide in Chile] | Global Revenue decreased by 2% to EUR 27.058M (2024). Gases and services sales were EUR 25.810M (2024). [Source: Infobae - Air Liquide gana 3.306 millones de euros en 2024] | Major competitor in the Chilean gas market. Expects improvements in operating margin and net profit in 2025. Fewer plants in Chile than Linde/Indura. [Source: provided context, Infobae - Air Liquide gana 3.306 millones de euros en 2024] |
| Brenntag | Volume data specific to Chile not available. | Global Revenue decreased from EUR 16.82B (2023) to EUR 16.24B (2024). Projected global revenue of EUR 17.23B for 2025. [Source: Eulerpool - Brenntag Precio de la acción, El frente a frente de dos multinacionales del gas acusadas por colusión en Chile] | Global results impacted by a challenging market in early 2024, with expected improvements later in the year. [Source: El frente a frente de dos multinacionales del gas acusadas por colusión en Chile] |
| Air Products (Indura) | Volume data specific to Chile not available. Holds significant market share (~77% combined with Linde) in Chile. [Source: provided context] | Global Revenue US$12B (2023). (Chile-specific revenue not available) | Accused of market collusion in Chile (2019-2021). Strong operational presence in Chile with multiple plants. [Source: provided context] |
| Oxiquim S.A. | Volume data specific to its chemical business with recent figures not available. | Decline from CLP 214,648.55M (2023). (Approx. US$225M in 2023). Full 2024 revenue not available. [Source: CMF - OXIQUIM S.A. - Informacion Financiera, TradingView - Gráfico/precio acciones OXIQUIM] | Reported decrease in sales and net income in 2023. Business segments are Commercial (chemicals) and Services (logistics). [Source: CMF - OXIQUIM S.A. - Informacion Financiera] |
Selected Chilean Chemical Market Segment Trends (2024-2034 Projections)
| Market Segment | Estimated Size (2024) | Projected Size (Future) | CAGR (Projected) | Key Drivers / Notes |
|---|---|---|---|---|
| Crop Protection Chemicals | USD 442.63 million [Source: Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report] | USD 591.21 million (by 2030) [Source: Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report] | 4.9% (2025-2030) [Source: Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report] | Driven by agriculture sector growth, demand for high-quality produce for export. Fungicides (59%) and fruits/vegetables sector (49%) are key contributors. [Source: Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report] |
| Industrial Explosives | USD 1147.7 million (Latin America, Chile ~25%) [Source: Expert Market Research - Latin America Explosives Market Size & Industry Trend | USD 1994.18 million (Latin America, by 2032) [Source: Expert Market Research - Latin America Explosives Market Size & Industry Trend | 7.15% (Latin America, 2024-2032) [Source: Expert Market Research - Latin America Explosives Market Size & Industry Trend | Strongly linked to mining sector activity. Volume also projected to increase from 1.48M Tons (2024) to ~2.46M Tons (2034) in Latin America. [Source: Expert Market Research - Latin America Explosives Market Size & Industry Trend, Cognitive Market Research - South America Industrial Explosives Market Report 2025] |
| Industrial Gases | USD 0.68 billion (Latin America Food Grade, 2024) [Source: Roots Analysis - Industrial Gases Market Size & Share Report, 2035] | USD 1.18 billion (Latin America Food Grade, by 2032) [Source: Roots Analysis - Industrial Gases Market Size & Share Report, 2035] | Not specified for total market, but food grade has growth. | Significant market share held by Linde and Air Products/Indura (~77%) in Chile. [Source: provided context] Demand driven by mining, healthcare, food & beverage, manufacturing. [Source: Mordor Intelligence - Industrial Gas Market Analysis |
| Chemical Exports (Overall) | USD 9.55 Billion (2023 - Inorganic chemicals etc.) [Source: Santandertrade.com - Chilean foreign trade in figures] | Trend data not available for overall exports. | - | Significant component of Chilean non-mineral exports (9%). Primarily driven by resource-based chemicals (lithium, iodine, nitrates, molybdenum, rhenium). [Source: Santandertrade.com - Chilean foreign trade in figures, Tendata - What Products Will Chile Export in 2023?] |
| Chemical Imports (Overall) | 26,935 shipments (Mar 2023-Feb 2024) [Source: Volza.com - Chemicals Imports in Chile] | Trend data not available for overall imports. | - | Diverse range of chemicals imported to support domestic manufacturing and end-use needs. [Source: iContainers - What Are Chile's Main Imports and Exports?, Volza.com - Chemicals Imports in Chile, Volza.com - Fine Chemicals Imports in Chile] |
References¶
- AgroPages.com - Chile's Pesticide Market: Legacy Agricultural Chemical Companies Maintain Dominance: https://agropages.com/news/news-53465.html
- Air Liquide - Air Liquide in Chile: https://www.airliquide.cl/en/chile/air-liquide-chile
- AméricaEconomía - Chilean Codelco to use explosives with 40% less carbon footprint: https://www.americaeconomia.com/negocios-industria/codelco-usara-explosivos-con-40-menos-huella-de-carbono
- Bolsamania - Economía.- La productora chilena SQM registra pérdidas de 377 millones en 2024: https://www.bolsamania.com/noticias/materias-primas/economia--la-productora-chilena-sqm-registra-perdidas-de-377-millones-en-2024--1804905.html
- CIRS Group - Chile Launched Second Round of Chemical Registration Under Its "REACH" System: https://www.cirs-group.com/en/news/chile-launches-second-round-of-chemical-registration
- CMF - ANALISIS RAZONADO CONSOLIDADO (Enaex): https://www.cmfchile.cl/sitio/informes/enaex/eeff_individual_enaex_iic_1S2024.pdf
- CMF - OXIQUIM S.A. - Informacion Financiera: https://www.cmfchile.cl/institucional/mercados/valores/entidad.html?rut=96501940&tipo=S&act=INF
- Cognitive Market Research - South America Industrial Explosives Market Report 2025: https://www.cognitivemarketresearch.com/south-america/industrial-explosives-market
- DACHSER - DACHSER Chem Logistics: Your partner for safe chemical transport and warehousing solutions: https://www.dachser.com/en/solutions/special-solutions/chem-logistics
- Expert Market Research - Latin America Explosives Market Size & Industry Trend | 2034: https://www.expertmarketresearch.com/reports/latin-america-explosives-market
- Feller Rate - MOLYMET - MOLIBDENOS Y METALES S.A.: https://feller-rate.cl/publicacion/molymet/45690
- Forbes Chile - Bayer realizará despidos sustanciales: https://forbes.cl/negocios/2024/01/23/bayer-realizara-despidos-sustanciales-para-reducir-gastos/
- Global Product Compliance - ACTIONABLE SUMMARY CHILEAN CHEMICAL CONTROL REGULATION (DECREE 57): https://globalproductcompliance.com/wp-content/uploads/2022/11/Chilean-Chemical-Control-Regulation-Decree-57-GPC-Factsheet.pdf
- iContainers - What Are Chile's Main Imports and Exports?: https://www.icontainers.com/us/2020/01/29/chile-main-imports-and-exports/
- Infobae - Air Liquide gana 3.306 millones de euros en 2024: https://www.infobae.com/america/agencias/2024/02/15/air-liquide-gana-3306-millones-de-euros-en-2023-un-12-mas/
- Innovation News Network - Chile switches to Direct Lithium Extraction: https://www.innovationnewsnetwork.net/chile-switches-to-direct-lithium-extraction/28180/
- La Tercera - Ingresos y ganancias de Enaex crecen en 2024: https://www.latercera.com/pulso/noticia/ingresos-y-ganancias-de-enaex-crecen-en-2024/E3J6Z5WZQZDPBGX5A3L7K4A3NM/
- Mecalux.cl - Los retos de almacenar productos químicos: proyectos de éxito: https://www.mecalux.cl/blog/almacenamiento-productos-quimicos
- Molymet - 2024 Report: https://www.molymet.com/molymet/site/artic/20240307/asoc/20240307094547/Molymet_Reporte_2024.pdf
- Mordor Intelligence - Chile Crop Protection Chemicals Market Size & Share Analysis - Industry Research Report: https://www.mordorintelligence.com/industry-reports/chile-crop-protection-chemicals-market
- Mordor Intelligence - Industrial Gas Market Analysis | Industry Forecast, Size & Report: https://www.mordorintelligence.com/industry-reports/industrial-gas-market
- Noatum Logistics - Integrated logistics solutions for the Chemical Industry: https://noatumlogistics.com/en/industries/chemical-logistics/
- Portal Innova - BASF muestra su resiliencia dentro de un entorno de mercado difícil: https://www.portalinnova.cl/basf-muestra-su-resiliencia-dentro-de-un-entorno-de-mercado-dificil/
- PV Magazine - Is fair lithium from Chile possible?: https://www.pv-magazine.com/2020/01/13/is-fair-lithium-from-chile-possible/
- Productos Químicos Chile - Nosotros: https://productosquimicoschile.cl/nosotros/
- Roots Analysis - Industrial Gases Market Size & Share Report, 2035: https://www.rootsanalysis.com/reports/industrial-gases-market.html
- Santandertrade.com - Chilean foreign trade in figures: https://santandertrade.com/en/portal/establish-grow/chile/foreign-trade
- SolvChem, Inc. - Leading Chemical Distributor in Latin America: https://www.solvcheminternational.com/latin-america-chemical-distributor
- Stanford School of Earth, Energy & Environmental Sciences - Chile's Mining and Chemicals Industries: https://pangea.stanford.edu/news/chiles-mining-and-chemicals-industries
- Stock Analysis - Sociedad Química y Minera de Chile S.A. Revenue 2015-2024: https://stockanalysis.com/companies/sqm/revenue/
- Sumitomo Corporation - Sumitomo Corporation invests in Chilean biocontrol manufacturing company Bio Insumos Nativa: https://www.sumitomocorp.com/en/jp/news/topics/2024/group/20241030
- Tendata - What Products Will Chile Export in 2023?: https://www.tendata.com/blog/what-products-will-chile-export-in-2023/
- TradingView - Gráfico/precio acciones OXIQUIM: https://cl.tradingview.com/symbols/BCS-OXIQUIM/
- Volza.com - Chemicals Imports in Chile: https://www.volza.com/p/chemicals/import/import-in-chile/
- Volza.com - Fine Chemicals Imports in Chile: https://www.volza.com/p/fine-chemicals/import/import-in-chile/