Commodities - ASEAN

ASEAN

The nominal value in the Commodities market is projected to reach US$2,477.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.46% resulting in a projected total amount of US$2,936.00bn by 2029.
The average price per contract in the Commodities market amounts to US$0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 139.50m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in ASEAN is experiencing a significant surge in trading activities and investments, reflecting the region's growing interest in financial derivatives. Customer preferences in the ASEAN Commodities market are leaning towards diversification and risk management strategies.

Investors are increasingly turning to commodities as an alternative asset class to hedge against inflation and economic uncertainties. The appeal of commodities lies in their ability to provide portfolio diversification and potentially higher returns compared to traditional assets. Trends in the market show a growing demand for commodities such as gold, oil, and agricultural products in countries like Indonesia and Malaysia.

The increasing industrialization and infrastructure development in these countries are driving the need for commodities like oil and metals. On the other hand, the agricultural sector in ASEAN countries is benefiting from rising global demand for food commodities. Local special circumstances in the ASEAN region play a significant role in shaping the Commodities market.

For instance, Singapore's position as a financial hub in the region has attracted a large number of commodity trading firms and investors. The country's strong regulatory framework and infrastructure make it an ideal location for trading commodities. In contrast, countries like Vietnam and the Philippines are emerging as key players in the agricultural commodities market due to their fertile land and growing agricultural sector.

Underlying macroeconomic factors, such as trade policies, currency fluctuations, and global economic conditions, also impact the Commodities market in ASEAN. The region's strong economic growth, increasing foreign investments, and trade agreements with other countries are creating a favorable environment for commodity trading. Additionally, fluctuations in commodity prices, supply chain disruptions, and geopolitical tensions can influence investor sentiment and trading activities in the market.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.