The price of a raw material depends on the balance between supply and demand in the market. Supply is influenced by production, storage, transportation self employeed database and product quality. Demand is determined by consumption, industrial needs, consumer preferences and the expectations of market players. The price of a raw material can also be affected by geopolitical, climatic, health or regulatory events that can disrupt supply or demand.
producers (farmers, miners, oil companies);
processors (refiners, steelmakers);
distributors (dealers, brokers);
end consumers (industrial, private);
and investors (hedge funds, banks).
These players have different objectives on the market: some seek to cover their exposure to price risk (hedging), others to take advantage of profit opportunities (trading).
What are the most traded materials on the commodities market?
Among the most traded commodities on the commodities market , we can mention the following.
Oil
It is the most important raw material in the commodities market, as it is used as a source of energy and as a raw material for the chemical industry. The price of oil depends on the balance between global supply and demand, as well as geopolitical and environmental factors. Oil is traded mainly on two exchanges: the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE).
Gold
The players in the raw materials market are numerous and varied. We can distinguish
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