MERCOSUR: Explosives Market 2024

Explosives Market Size in MERCOSUR

After four years of growth, the MERCOSUR explosives market decreased by -4.5% to $X in 2021. Overall, consumption recorded a mild reduction. Over the period under review, the market reached the maximum level at $X in 2013; however, from 2014 to 2021, consumption failed to regain momentum.

Explosives Production in MERCOSUR

In value terms, explosives production shrank to $X in 2021 estimated in export price. Over the period under review, production continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when the production volume increased by 15% against the previous year. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

Explosives Exports

Exports in MERCOSUR

In 2021, shipments abroad of prepared explosives increased by 9.7% to X tons, rising for the seventh year in a row after two years of decline. Total exports indicated a moderate expansion from 2012 to 2021: its volume increased at an average annual rate of +4.1% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +77.1% against 2014 indices. The pace of growth appeared the most rapid in 2018 with an increase of 15%. Over the period under review, the exports attained the peak figure in 2021 and are likely to see steady growth in the near future.

In value terms, explosives exports dropped to $X in 2021. Over the period under review, exports, however, recorded a perceptible shrinkage. The pace of growth was the most pronounced in 2017 with an increase of 24%. Over the period under review, the exports attained the peak figure at $X in 2013; however, from 2014 to 2021, the exports remained at a lower figure.

Exports by Country

Peru was the main exporter of prepared explosives in MERCOSUR, with the volume of exports recording X tons, which was approx. 77% of total exports in 2021. Brazil (X tons) ranks second in terms of the total exports with a 16% share, followed by Chile (5.6%). Argentina (X tons) followed a long way behind the leaders.

Peru was also the fastest-growing in terms of the prepared explosives exports, with a CAGR of +15.4% from 2012 to 2021. Brazil (-3.1%), Argentina (-7.4%) and Chile (-14.7%) illustrated a downward trend over the same period. From 2012 to 2021, the share of Peru increased by +46 percentage points.

In value terms, Peru ($X) remains the largest explosives supplier in MERCOSUR, comprising 57% of total exports. The second position in the ranking was taken by Brazil ($X), with an 18% share of total exports. It was followed by Chile, with an 18% share.

In Peru, explosives exports expanded at an average annual rate of +9.9% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Brazil (-1.2% per year) and Chile (-11.6% per year).

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2021, dropping by -15.4% against the previous year. Over the period under review, the export price showed a deep contraction. The most prominent rate of growth was recorded in 2017 when the export price increased by 23%. Over the period under review, the export prices reached the peak figure at $X per ton in 2013; however, from 2014 to 2021, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2021, amid the top suppliers, the country with the highest price was Argentina ($X per ton), while Peru ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Chile (+3.7%), while the other leaders experienced mixed trends in the export price figures.

Explosives Imports

Imports in MERCOSUR

In 2021, supplies from abroad of prepared explosives decreased by -4.9% to X tons, falling for the second year in a row after four years of growth. Total imports indicated a perceptible expansion from 2012 to 2021: its volume increased at an average annual rate of +3.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports decreased by -9.9% against 2019 indices. The most prominent rate of growth was recorded in 2017 when imports increased by 27% against the previous year. The volume of import peaked at X tons in 2019; however, from 2020 to 2021, imports remained at a lower figure.

In value terms, explosives imports rose notably to $X in 2021. Over the period under review, imports, however, saw a strong increase. The most prominent rate of growth was recorded in 2020 when imports increased by 53%. The level of import peaked in 2021 and is expected to retain growth in the immediate term.

Imports by Country

Ecuador represented the largest importer of prepared explosives in MERCOSUR, with the volume of imports recording X tons, which was near 37% of total imports in 2021. Chile (X tons) ranks second in terms of the total imports with a 21% share, followed by Paraguay (18%), Peru (11%) and Guyana (7%). The following importers - Argentina (X tons) and Colombia (X tons) - each recorded a 3.9% share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Guyana (with a CAGR of +45.5%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Chile ($X) constitutes the largest market for imported prepared explosives in MERCOSUR, comprising 64% of total imports. The second position in the ranking was held by Ecuador ($X), with an 11% share of total imports. It was followed by Peru, with a 6.7% share.

In Chile, explosives imports expanded at an average annual rate of +37.5% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Ecuador (+8.0% per year) and Peru (-3.5% per year).

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2021, increasing by 13% against the previous year. Import price indicated a prominent increase from 2012 to 2021: its price increased at an average annual rate of +5.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, explosives import price increased by +81.7% against 2019 indices. The pace of growth was the most pronounced in 2020 when the import price increased by 61%. The level of import peaked in 2021 and is likely to continue growth in years to come.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Chile ($X per ton), while Paraguay ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Chile (+24.8%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform