Updated Jan 20, 2023 18:39

Salt Market in Chile

Market Overview
In , the Chilean salt market decreased by -% to $, falling for the second consecutive year after two years of growth. Over the period under review, consumption continues to indicate a deep reduction. Over the period under review, the market hit record highs at $ in 2016; however, from 2017 to , consumption failed to regain momentum.

In value terms, salt production totaled $ in estimated in export price. Overall, the total production indicated mild growth from 2007 to : its value increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production increased by +% against 2019 indices. The pace of growth was the most pronounced in 2014 when the production volume increased by %. Over the period under review, production hit record highs at $ in 2016; however, from 2017 to , production failed to regain momentum.


Consumption
In , consumption of salt and pure sodium chloride decreased by -% to tons, falling for the second consecutive year after two years of growth. In general, consumption recorded a deep setback. Salt consumption peaked at tons in 2007; however, from 2008 to , consumption failed to regain momentum.

The revenue of the salt market in Chile dropped markedly to $ in , with a decrease of -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption continues to indicate a deep slump. Salt consumption peaked at $ in 2016; however, from 2017 to , consumption stood at a somewhat lower figure.


Market Forecast
Depressed by shrinking demand for salt in Chile, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of salt in Chile were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for salt.


Trade Balance
Chile remains a net exporter of salt; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.