Commodities - Japan

Japan

The nominal value in Japan's Commodities market is forecasted to reach US$5,576.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 1.84%, leading to a projected total amount of US$5,997.00bn by 2028.
The average price per contract in Japan's Commodities market stands at US$0.50 in 2024.
When compared globally, the highest nominal value is attained the in the United States (US$45,690.00bn in 2024).
In Japan's Commodities market, the number of contracts is expected to reach 11,720.00k by 2028.
Japan is experiencing a surge in trading activity for commodities futures, reflecting growing investor interest in diversifying portfolios and managing risk in the volatile market.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Japan is experiencing a significant shift in recent years.

Customer preferences: Investors in Japan have shown a growing interest in commodities trading as a way to diversify their investment portfolios and hedge against market volatility. With a strong focus on risk management, Japanese investors are increasingly turning to commodities as an alternative investment option.

Trends in the market: One notable trend in the Japanese commodities market is the increasing popularity of trading in financial derivatives such as futures and options. This trend is driven by a desire for more sophisticated trading strategies and the potential for higher returns. Additionally, there is a growing demand for commodities linked to renewable energy sources, reflecting Japan's commitment to sustainability and green initiatives.

Local special circumstances: Japan's unique position as a major importer of commodities, particularly energy resources, plays a significant role in shaping the local market dynamics. The country's heavy reliance on imports makes it particularly sensitive to global supply and demand fluctuations, leading to a greater emphasis on risk management strategies within the commodities market.

Underlying macroeconomic factors: The overall economic landscape in Japan, including factors such as interest rates, inflation, and currency exchange rates, has a direct impact on the commodities market. As the Japanese economy continues to recover from past challenges, such as deflation and slow growth, investors are increasingly looking to commodities as a way to capitalize on emerging opportunities and navigate potential risks 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.