According to MXV, in the third quarter of 2024, global raw material prices continued to fluctuate significantly. The trading volumes of various commodities in the recent quarter also experienced surprising shifts.
This transition mirrors changes in market demand and investment strategies, with formerly stable commodities unexpectedly declining to make room for emerging contenders.
Consequently, the market is witnessing a robust surge in metal commodities.
Of particular note is the outstanding acceleration of platinum, in association with NYMEX, which has surged to become the most actively traded product in Vietnam, commanding a substantial 21.5% share of the trading volume on MXV.
Meanwhile, Micro copper has ascended from the sixth position in the previous quarter to claim the third spot in the current rankings, boasting an 8% share. Other commodities like copper and Micro silver hold the seventh and ninth positions, with 5.7% and 5.2% of the trading volume, respectively.
"The increasing popularity of metal commodities among investors is clear, with four commodities from this category now ranking in the top 10," said Nguyen Ngoc Quynh, deputy general director of the MXV.
"The precious metal market has recently reaped the benefits of a period where markets closely monitor the US Federal Reserve's significant interest rate adjustments.
“The persisting low-interest-rate environment is expected to continue fostering favourable pricing conditions for precious metals throughout this year.
“In my view, this positive trajectory in precious metals may well extend into the fourth quarter as macro-economic pressures ease gradually, and the impact of a new cycle of interest rate reductions is felt across global financial and commodity markets.”
Following platinum, soybeans interconnected with the Chicago Exchange claim a notable 12.7% share, securing the second spot on the list of the most actively traded commodities in the third quarter.
Processed products like dried soybeans and soybean oil also maintain their presence on the roster at positions six and eight, respectively.
Subsequent rankings unveil familiar commodities on the quarterly leaderboard. Wheat and Robusta coffee take the fourth and fifth slots, with respective shares of 7.1% and 6.8% of the total trading volume.
Arabica coffee has re-entered the competition, solidifying its place in the top 10 most traded commodities in Vietnam for the third quarter with a 5.1% share.
Many experts anticipate significant commodity price fluctuations in the fourth quarter of this year due to unpredictable market factors such as escalating political tensions, climate change and extreme weather conditions.
For agricultural products and industrial raw materials, weather remains a key market influencer. Coffee prices are expected to stay high due to reduced supplies from major producers like Brazil and Vietnam, impacted by severe weather.
On the other hand, energy markets face macro-economic pressures and Middle East tensions.
Metals are poised for growth in the coming months, supported by new economic policies. The Fed's monetary policy shift and potential interest rate cuts will likely boost metal prices, particularly precious metals sensitive to macro-economic conditions.
Top five market shares
MXV's third-quarter market share rankings reveal familiar names, but each member has experienced notable fluctuations in market share.
Gia Cat Loi Commodity Trading JSC retains its top spot as the country's leading commodity trading brokerage, with a 2% increase in market share from the second quarter.
This outcome is unsurprising given Gia Cat Loi's status as one of the earliest members with the largest office network nationwide.
In second place, the Ho Chi Minh City Commodity Trading JSC commands a substantial 17.7% market share.
Friendship International Investment Company Limited (Finvest) secures the third spot with a 12.5% market share, while Saigon Futures JSC maintains its fourth-place position with a 9% market share.
A notable surprise in this quarter's rankings is VMEX Commodity Trading JSC. Leveraging innovative business strategies, VMEX has climbed to fifth place with a 3.4% market share. This marks VMEX's second appearance in the top five since the third quarter of 2023.
Quynh said that the competition in the commodity brokerage market in the third quarter was vibrant, showing shifts not only in member rankings but also in overall market share.
Currently, the top five collectively hold 76% of the total market share, a significant decrease from previous quarters, signalling a more intense competition.
This also suggests that numerous emerging players are poised for remarkable advancements in the final months of 2024, he added.
