lithium

The Chilean-Indonesian Chamber of Commerce and Culture is pleased to bring you the latest updates in the world of commerce and culture between Chile and Indonesia. We have curated the most relevant news items to provide a comprehensive overview of the week's events.

Francisco Lecaros, president of the Mining Foundation of Chile, emphasizes that Chile should not only export minerals but also mining knowledge. The Foundation has launched a massive campaign to educate a million people about the importance of mining in their daily lives, offering educational games, maps, and brochures.

India emerges as one of the most dynamic markets for Chilean fruit exports, with a 53% increase in the first seven months of this year compared to the same period last year. India is now the fastest-growing market among the top 15 destinations for Chilean exports, according to data from the National Customs Service.

Despite the positive results of agricultural exports, other indicators such as production levels, poverty rates in rural areas, and economic and social inequalities in family farming need to be considered for a comprehensive diagnosis of the national agrarian situation. According to the Central Bank data, the exports from the agricultural, forestry, and fishing sector reached $5.601 billion in the first half of this year, a more than 10% increase from last year.

Chile remains the leading lithium producer in South America and second in the world, behind Australia. In 2023, national production reached 270,947 tons of lithium carbonate equivalent, a 4.3% increase from 2022 and a 120.5% increase from 2020. Production is projected to reach 275,000 and 285,000 tons in 2024 and 2025, respectively.

The price of farmed Atlantic salmon from Norway has fallen by 14% since June 2006, but the amounts achieved in August still far exceed those of 2005. Similarly, Chilean salmonids are experiencing a similar situation. The high prices in Europe and Japan have diverted national exports from their traditional market, the United States.

The Chilean Foreign Minister, Alberto van Klaveren, met with the Indian Ambassador to Chile, Abhilasha Joshi, to discuss the upcoming Chile Summit India 2024. This public-private event, organized by ProChile, aims to seek new opportunities in the Asian sector and strengthen ties between the two nations in terms of trade cooperation and initiatives to facilitate the exchange of goods and services.

• Francisco Lecaros, presidente Fundación Minera: “Chile no solo debe exportar minerales, sino que también minería” - NOSTÁLGICA CL (Nostalgica.cl)
• India se ubica como uno de los mercados más dinámicos para las exportaciones frutícolas chilenas – Simfruit (Simfruit.cl)
• Exportaciones y políticas agrícolas – El Clarin de Chile (Elclarin.cl)
• Chile sigue liderando la producción de litio en Sudamérica a la vez que cae valor de las exportaciones – Diario Chañarcillo (Chanarcillo.cl)
• Comercialización de salmónidos continua al alza - AQUA (Aqua.cl)
• Canciller se reúne con embajadora de la India previo al Chile Summit India 2024 - Minrel (Minrel.gob.cl)

The Indo-Chilean Chamber of Commerce and Culture presents a summary of the week's most relevant news regarding the economic and commercial landscape in Chile. This includes the lithium market, international relations, and exports.

Chile's Lithium Market
The demand and production of lithium in Chile have experienced a decline, as reported by Revista Digital Minera REDIMIN. This decrease has had a significant impact on the market. However, despite this downturn, a report from the Chilean Copper Commission (Cochilco) projects a surplus of lithium in the country for the coming years. The report, titled "Lithium Market. Projection 2024 - 2025," covers various aspects such as demand, supply, production, exports, and the price of the mineral.

Chile's International Trade
The Undersecretary of International Economic Relations, Claudia Sanhueza, recently addressed the challenges of international trade at the UOH. The talk, titled "Chile and its Trade Policy," aimed to foster open and constructive dialogue about Chile's role in international commerce and the future challenges in exports. Sanhueza emphasized the objectives of the current trade policy and the ongoing agreements.

Chile's Exports to India
On a positive note, Chile's exports to India have seen a 53 percent increase, primarily driven by fruits, manufactures, and mineral products, as reported by Al servicio de la verdad. Key commodities include iodine, molybdenum, cellulose, and food items such as walnuts, apples, and kiwis. This upswing in trade is a testament to the efforts of ProChile, the foreign ministry's institution promoting the country's goods and services globally.

Economic Growth and Competitiveness in Chile
Economist Roberto Darrigrandi, in an interview with PortalPortuario, expressed concern over Chile's economic growth and competitiveness. Darrigrandi stated that Chile has not seen significant growth for the past decade and argued that the country's issues with productivity and competitiveness cannot be blamed on external global incidences. He emphasized the need for internal advancements and innovations, such as digitalization, to stimulate growth.

• La caída en la demanda y producción de litio en Chile: impacto en el mercado - Revista Digital Minera REDIMIN (Redimin.cl)
• Informe de Cochilco entrega proyecciones en torno al litio en el corto plazo - Mch (Mch.cl)
• Subsecretaria de Relaciones Económicas Internacionales abordó desafíos del comercio internacional en la UOH – G5noticias (G5noticias.cl)
• Superávit de litio en Chile se mantendrá en los próximos años - Revista Digital Minera REDIMIN (Redimin.cl)
• Aumentan en 53 por ciento exportaciones de Chile a la India – Al servicio de la verdad (Cronicadigital.cl)
• Roberto Darrigrandi: "Chile no crece hace diez años y no se puede culpar al mundo exterior" - PortalPortuario (Portalportuario.cl)

September has been a significant month for both Chilean and Indonesian business and commerce, with a series of noteworthy events and achievements that have taken place in both countries.

In Chile, the Agriculture and Livestock Service of Biobío (SAG Biobío) held a meeting with representatives of blueberry exporting plants, reinforcing the country's commitment to agricultural exports. Additionally, the National Customs Service's Chemical Laboratory has recently achieved accreditation in the area of lithium products, a first in Chile. This accreditation, granted by the National Institute of Standardization (INN), strengthens the supervisory capacities of non-metallic mining exports.

Chile's foreign trade marked a new milestone this month, accumulating shipments valued at US$ 41.392 billion between January and mid-September, the highest level in history. This surpasses the previous record of US$ 40.573.9 billion totalized in 2005. The significant increase in copper prices, which have averaged US$ 2.98 per pound on the London Metal Exchange so far this year, largely contributed to this achievement.

Meanwhile, in Indonesia, the East Java Multipurpose Terminal (EJMT), a business unit of International Container Terminal Services, Inc. (ICTSI) in Lamongan Regency, received two new post-Panamax mobile harbor cranes ESP.8 from Konecranes Gottwald. The new equipment will assist EJMT in handling bulk, project, and container cargo once the terminal begins operations in September.

Lastly, the General Director of ProChile has invited participation in the Silvoagricultural Contest 2025. This initiative is in line with the economic trends in the Chilean agricultural market, which must adapt to the challenges posed by climate change to maintain its position on the global stage. With its unique climatic conditions and rich agricultural heritage, Chile is one of the world's leading exporters of various products.

• SAG Biobío se reunió con representantes de plantas exportadoras de arándanos | La Tribuna (Latribuna.cl)
• Chile: Laboratorio Químico de Aduanas alcanza acreditación en área de productos de litio - PortalPortuario (Portalportuario.cl)
• Indonesia: East Java Multipurpose Terminal recibe nuevas grúas post-Panamax - PortalPortuario (Portalportuario.cl)
• Director General de ProChile invita a participar en Concurso Silvoagropecuario 2025 (Prochile.gob.cl)
• Exportaciones alcanzan el nivel más alto de la historia - AQUA (Aqua.cl)
• Tendencias económicas en el mercado agrícola chileno (Portalmetropolitano.cl)

The Indo-Chilean Chamber of Commerce and Culture has been closely monitoring the recent developments in the economic and trade relations between Indonesia and Chile. This week's news reflects the strengthening of ties and the potential for growth despite some challenges.

According to the Directorate of Studies of the Undersecretariat of International Economic Relations (Subrei), Chile's trade exchange experienced a contraction of 1.7% compared to the same period in 2023, totaling USD 60.220 billion. However, the country's exports, which amounted to USD 33.062 billion, saw a slight fall of 0.4%. This is largely due to a decrease in lithium, molybdenum oxide, and copper cathode exports. On the other hand, the growth in shipments of copper concentrates, fresh cherries, gold, iron, fresh grapes, bleached and semi-bleached eucalyptus cellulose, fresh blueberries, fresh plums, potassium nitrate, and fishmeal has largely offset these losses.

Indonesia has expressed interest in deepening trade with Chile, particularly in the lithium sector, which is vital for Jakarta's aspirations in electric vehicle production. The main exported items include vehicles, spare parts, footwear, and Indonesian fertilizers, Chilean copper, cellulose, and fishery articles. The Comprehensive Economic Partnership Agreement (CEPA), signed between the two nations in 2019, has led to a 23% increase in trade since its implementation.

The Indonesia-Chile Forum, held at the Intercontinental Hotel in Santiago, brought together government, business, and academic leaders to optimize trade, investment, and economic partnership between the two countries. The event underlined the importance of strengthening bilateral ties in a context of economic growth in Southeast Asia and the growing relevance of relations with the region.

Furthermore, the Senate Foreign Relations Committee unanimously approved projects to modernize economic-trade agreements with Indonesia in the field of services and with the Pacific Alliance, which seeks to expand the scope of origin accumulation to the Associated States of the regional bloc. These initiatives will now continue their process in the Senate Chamber.

On another note, Meratus Group announced the arrival and incorporation of the WM Meratus Cilacap, its new ship, into the company's fleet. With enhanced capacity and cutting-edge technology, the company is better equipped to serve its customers, particularly in remote ports located in the Indonesian archipelago.

In conclusion, the Indo-Chilean economic and trade relations are on a promising trajectory, marked by cooperation, strategic agreements, and mutual interests in key sectors. The Chamber remains committed to fostering these ties for the mutual benefit of both nations.

• Intercambio comercial de Chile cae -1,7% - PortalPortuario (Portalportuario.cl)
• Con la mirada en el litio, Indonesia quiere profundizar comercio con Chile | AméricaEconomía (Americaeconomia.com)
• “Avanza la alianza: Foro Indonesia-Chile impulsa la cooperación económica entre ambos países” | ADN Radio (Adnradio.cl)
• Avanzan en comisión del Senado acuerdos con Indonesia y Alianza del Pacífico | Diario Financiero (Df.cl)
• Meratus Cilacap se integra a operaciones en Indonesia - PortalPortuario (Portalportuario.cl)
• Subsecretaria Sanhueza destaca aprobación de proyectos que modernizan acuerdos con Indonesia y con la Alianza del Pacífico en Comisión de Relaciones Exteriores del Senado (Diarioestrategia.cl)