Commodities

The nominal value in the Commodities market is projected to reach US$26.84tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.93% resulting in a projected total amount of US$29.53tn by 2029.
The average price per contract in the Commodities market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 2.96bn by 2029.

Definition:

The commodities market refers to derivatives of commodities. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of Gold, an investor could own a derivative of Gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The commodities market comprises derivatives of precious metals, industrial metals, energy products, agricultural products & the Emission Trade System. The segments of precious metals, industrial metals, energy products, and agricultural products are also providing price data of popular specific derivatives. The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year) as well as the average notional value per contract. Furthermore, the share of futures and options is provided for these KPIs to display even more insights into this market.

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Physical commodities
Other Derivative types
other Commodity Types

The Commodities market in Eastern Asia reflects a dynamic landscape driven by various factors influencing customer preferences, market trends, and local circumstances. Customer preferences in the Eastern Asian Commodities market are notably shaped by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors in the region show a preference for commodities as a way to spread risk and potentially achieve higher returns. Additionally, the accessibility of online trading platforms has increased retail participation in the market, with a focus on commodities as an alternative investment avenue. Trends in the Eastern Asian Commodities market vary across countries in the region.

For instance, in China, there is a noticeable shift towards environmentally sustainable commodities as the government pushes for green initiatives. This trend is driven by both regulatory requirements and increasing consumer awareness of environmental issues. In Japan, there is a growing interest in commodities linked to technological advancements, such as rare earth metals used in electronics manufacturing.

South Korea, on the other hand, is seeing a rise in demand for commodities related to energy production, particularly as the country aims to reduce its reliance on fossil fuels. Local special circumstances further influence the Eastern Asian Commodities market. For example, in countries like South Korea and Japan, limited natural resources drive a reliance on imported commodities, leading to a focus on securing stable supply chains.

This reliance on imports can also make these countries more susceptible to global market fluctuations, impacting local commodity prices. Additionally, geopolitical tensions in the region can introduce uncertainties that affect commodity trading activities. Underlying macroeconomic factors play a significant role in shaping the Eastern Asian Commodities market.

Economic growth, inflation rates, and currency exchange rates all impact commodity prices and trading volumes in the region. For instance, a slowdown in economic growth in China, as seen in recent years, can lead to reduced demand for certain commodities, affecting prices globally. Similarly, fluctuations in currency values can influence the cost of importing commodities, affecting local market dynamics.

Overall, the Commodities market in Eastern Asia is a complex and evolving ecosystem influenced by a combination of customer preferences, market trends, local circumstances, and macroeconomic factors.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.