Energy Product Derivatives - Mongolia

Mongolia

The nominal value in the Energy Product Derivatives market is projected to reach US$10.91bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.23% resulting in a projected total amount of US$14.76bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.30 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 39.93k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Mongolia is experiencing a notable increase in trading activities and market participation.

Customer preferences: Customers in Mongolia are showing a growing interest in Energy Product Derivatives as they seek to diversify their investment portfolios and hedge against market volatility. The potential for high returns and the ability to speculate on price movements are attracting both institutional and retail investors to this market.

Trends in the market: One trend observed in the Mongolian Energy Product Derivatives market is the increasing adoption of online trading platforms, making it more convenient for investors to participate in derivative trading. Additionally, there is a noticeable shift towards more complex derivative products as market participants become more sophisticated in their trading strategies.

Local special circumstances: Mongolia's heavy reliance on energy imports, particularly from neighboring countries, creates a unique market dynamic for Energy Product Derivatives. Fluctuations in global energy prices and geopolitical events in the region directly impact Mongolia's energy sector, driving the demand for energy derivatives as a risk management tool.

Underlying macroeconomic factors: The economic growth and development in Mongolia are driving the demand for energy resources, leading to increased trading activities in Energy Product Derivatives. As the country continues to industrialize and expand its energy infrastructure, the need for effective risk management solutions through derivatives becomes more pronounced. Additionally, government policies and regulations play a crucial role in shaping the Energy Product Derivatives market in Mongolia, influencing trading volumes and market liquidity.

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.