Commodities - Mongolia

Mongolia

The nominal value in the Commodities market is projected to reach US$23.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.22% resulting in a projected total amount of US$30.43bn by 2029.
The average price per contract in the Commodities market amounts to US$0.07 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 371.10k by 2029.

Market

Region

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Currency

Analyst Opinion

The Commodities market in Mongolia is experiencing a significant shift in recent years, reflecting changes in customer preferences, market trends, and local special circumstances.

Customer preferences: In Mongolia, investors are showing a growing interest in commodities as a way to diversify their investment portfolios and hedge against market volatility. The appeal of commodities lies in their potential for high returns and as a way to spread risk.

Trends in the market: One noticeable trend in the Mongolian Commodities market is the increasing popularity of trading in commodity derivatives, such as futures and options. This trend is driven by the desire of investors to speculate on price movements without owning the physical assets. Additionally, the market is witnessing a rise in algorithmic trading, which is streamlining the process and increasing efficiency.

Local special circumstances: Mongolia's economy is heavily reliant on natural resources, such as coal, copper, and gold. The country's abundant mineral reserves make commodities trading a significant aspect of the economy. As a result, the government has been taking steps to develop the commodities market further and attract more foreign investment.

Underlying macroeconomic factors: The development of the commodities market in Mongolia is also influenced by broader macroeconomic factors. Economic growth, political stability, and regulatory reforms play a crucial role in shaping the market dynamics. The government's efforts to improve transparency and governance in the commodities sector are creating a more favorable environment for investors. Overall, the Commodities market in Mongolia is evolving rapidly, driven by changing customer preferences, market trends, and local economic conditions. Investors are increasingly turning to commodities as a strategic investment option, while the government is working to enhance the regulatory framework to attract more foreign participation.

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.