The Manufacturing Production Index decreased by 13.3% in May, hit by a decline in food processing, according to the National Statistics Institute (INE). The INE also reported that copper production in Chile rose by a weak 0.6% year-on-year to 495,604 tons in May, with resource extraction up 3.4% to May. Furthermore, the INE also said that the Mining Production Index showed an increase of 2.1% over the same month last year.
Unemployment in Chile rose to 11.2% in May and remained at its highest level in a decade especially in key sectors such as trade, accommodation and food services, according to the National Statistics Institute (INE). The record for May is 4 percentage points higher than in the same period of the previous year and 2.2 points more than in April.
A further 150 BYD electric buses went into service in Santiago, Chile, bringing the total number of BYD electric buses in Chile to 455. In autumn last year, in cooperation with Enel X and Metbus BYD, the first electric bus corridor was set up in Latin America in the Chilean capital. With 455 electric buses now in service in Chile, the Chinese company claims to lead the market for electric buses in the country with a share of 65%.
During the summer citrus season, LGS Specialty Sales sources lemons, navels, minneolas, mandarins and cara cara oranges to the U.S. for its Darling Citrus® line. According to LGS, the company is experiencing a strong summer lemon season from Argentina and Chile. Chilean lemon season began in late June and anticipates going through early October with a peak in medium to small size fruit.
After learning about the INE’s sector figures, Credicorp Capital projects that the Imacec in May could decrease by about 19% p.a. while a greater fall is projected in June as social distancing measures have affected a greater number of workers and economic activities, particularly the mining sector.
Despite the negative effects of the pandemic, Chilean cherries achieved historical figures during the 2019-2020 season, where China was a key consumer. According to the president of the Federation of Fruit Producers of Chile (Fedefruta), Jorge Valenzuela, last season they exported about 230,000 tons of cherries, a “historical record.” He pointed out that the figure left revenues of $1,400 million for Chile.
The Official Gazette published a series of modifications made by the Ministry of Finance to the regulations of the Guarantee Fund for Small Business Owners (Fogape), with the aim of improving the delivery of credits in the midst of COVID-19. The main changes introduced are the reduction of the deductible and the extension of guarantees for small businesses.
Latam Airlines and some of its subsidiaries formalised before a U.S. court the first tranche of the proposed DIP (Debtor in Possession) financing, as part of the reorganisation process that was prompted by the negative effects of the pandemic in the commercial aviation industry. It corresponds to US$900 million that shareholders Qatar Airways and the Cueto and Amaro families committed when they announced the request for Chapter 11.
Copper prices rose on Monday, trading close to a five-month high, due to disruptions in the supply of the metal in Chile solid demand in China and reduced inventories of the input. Three-month copper on the London Metal Exchange (LME) gained 0.2% at $5,969.50 a tonne, close to $6,006. The metal, used in the energy and construction industries, has soared 35% from its March floors, recovering almost all of the ground lost during the early stages of COVID-19.
Revelo Resources Corp. wholly-owns four gold-silver projects covering more than 38,000 hectares of ground along northern Chile’s highly prospective and productive mineral belts. Revelo intends to focus its activities and exploration funds, subject to Revelo raising new capital, on a rolling program of exploration on these projects in order to advance towards potential discovery. Exploration on the projects has included proof-of-concept drilling at Victoria Sur, Las Pampas and Loro which has shown clear evidence for the styles of mineralisation sought.