WTI crude oil Vietnam’s most traded commodity in 2023

WTI crude oil has overtaken WTI micro-crude oil to become Vietnam’s most traded product in 2023, accounting for 13.63% of total trading volume.

This information is contained a report compiled by the Mercantile Exchange of Vietnam (MXV) that deals with commodities traded with exchanges around the world.

The report also deals with top consulting and brokerage units with a large market share in 2023.

Most traded

The exchange currently lists 45 products connected to most major commodity exchanges in the world. The products are divided into four groups: agricultural, energy, industrial raw materials and metals.

In 2023, although the commodity market recorded fluctuations in all four groups, the energy group still achieved the highest trading volume at MXV.

WTI crude oil overtook WTI micro-crude oil to become the most traded product in 2023, accounting for 13.63% of the total trading volume. WTI micro-crude oil with a low margin advantage (only 1/10 of the margin of WTI crude oil) ranked second, reaching 13.61%.

Soybeans and dried soybeans came in third and fourth place with 9.5% and 7.5%, respectively; and Arabica coffee was fifth with 6.3%.

Two commodities in the metal group, platinum and micro copper, rose to sixth and seventh positions with respective proportions of 5.4% and 5.1%.

Top 5 commodity brokerage market shares

According to data from MXV's transaction management division, Gia Cat Loi Commodity Trading JSC was the member with the largest commodity brokerage market share in Vietnam last year, accounting for 24.4% of the total market trading volume.

Since officially becoming a business member of MXV in January 2019, Gia Cat Loi has held the leading position in the country's brokerage market share for all five years.

The next three slots in the Top 5 follow closely behind Gia Cat Loi, which has resulted in a “thrilling” market share race over the last year, according to the MXV report.

With a 19.1% market share, Ho Chi Minh City Commodity Trading JSC (HCT) finished the year in second place, followed by Saigon Futures JSC and Huu Nghi International Investment Company Limited (Finvest) with respective market shares of 18.3% and 12.7%.

While the top four members have been in the industry since the beginning, the firm in the fifth position has been a surprise. With a dramatic spike in transaction volume in the last two months of the year, Hitech Finance JSC outpaced several long-standing members to acquire a 3.2% market share.

MXV deputy general director Nguyen Ngoc Quynh said competition for commodities brokerage market share in 2023 was particularly interesting, with continual ranking adjustments happening in the last months of the year.

The top five now account for 77% of total market trading volume, significantly less than last year. This indicates that the race for the Top 5 spots will be much more competitive in 2024, with many new possible candidates.