Best 5 Commodities to Trade in India in 2022
2022 has offered the market plenty of opportunities in commodity trading. The previous two years shook the markets and affected every sector. Though commodities were one of them, they could keep up the growth. But, continuous observations and analysis of the local and global markets are inevitable.
Events happening in different parts of the world can impact commodity market prices. And the government’s response also has a role to play. For example, the Ukraine-Russia war caused a price increase in petroleum and food.
Such situations affect your trading decisions and results. Hence we have come up with the best five commodities to trade in India in 2022. Read on.
Top 5 Items to Consider for Commodity Trading in India in 2022
Crude oil is blood for industrialized economies. And India needs it more as the fastest-growing nation. But it is one type of fossil fuel and comes from natural underground reservoirs. So it is in limited quantity and a non-renewable resource.
The beginning of the pandemic in 2020 caused a steep decrease in the use of petroleum. But then vaccinations came, and their distribution turned the tables. The restart of world trade and cargo movements added fuel to the fire. Since 2021 its demand has only gone up.
And as of 2022, the forecasts by OPEC and IEA say that the consumption will surpass 100 million barrels per day. The commodity market prices touched a price of around 87 USD per barrel in September 2022. Thus the trade will likely happen between Rs. 4500 and Rs. 6750 in India as forecasted by MCX.
The demand for crude oil is high and will increase in the future in India. And the market will see ups and down within the price range mentioned above. That means online commodity trading in crude oil in India can render good returns in 2022.
Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector.
CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment.
There are 4500 CNG filling stations in the country as of 2022. Further, the petroleum and gas ministry has announced the setting up of 3500 stations by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity.
Gold has always been a precious metal, and humans love to own it as much as possible. It is also used in industries like jewellery, dentistry, and medicine. Being a high-value commodity since ancient times, governments consider it a financial asset.
India is the biggest consumer of gold jewellery in the world. And the consumption has increased since 2021. Further, the country will see a demand of over 800 tons in 2022, as per the world gold council.
One of the main reasons for such a huge demand is the nation’s sentiments. They consider gold as a protective commodity against economic downtrends and inflexions. Also, India imports most of its gold from other countries. So its price goes up when the value of the Indian rupee goes down against the dollar.
Gold is available in different sizes, i.e., Gold Mini, Gold Guinea, and Gold Petal. Thus it becomes easy to buy and sell. Hence it is one of the best options for online commodity trading in India in 2022.
Silver is another commodity that is very popular in India. It is helpful in many industries, like jewellery, electronics, dentistry, and medicine. Silver, given its diverse applications, has always been in demand globally.
The global supply of this metal was 1056.20 million ounces, while demand was 1033.10 million ounces in 2021. Thus it experienced an 8.20 per cent and 15.29 per cent increase in supply and demand from the previous year.
In India, its price ranged from Rs. 15280 to Rs. 73666 per kg in MCX silver futures in 2021. And its demand may rise due to forecasts in the manufacturing industry in 2022. Based on that, the silver trade prices will be between Rs. 55000 and Rs. 75000 per kg in MCX.
These numbers suggest the importance of silver as a commodity in the market. They also put this metal on the commodity trading list in 2022 in the Indian market.
Aluminium is a lightweight metal and a crucial element in many manufacturing industries. It includes automobiles, packaging and storage, aeroplane, construction, and electronics. Aluminium is also applicable in furniture, decoration, and many other areas.
India will need aluminium in large quantities as a fast-growing nation in 2022 and beyond. Yet, the biggest consumer is China, and this country’s demand affects the prices. Apart from this, the oil and electricity prices play a crucial role in the production cost of this metal.
Some other factors fluctuate the prices of aluminium. Reduced mining and the energy crisis in China are two of them. Further, a decline in inventory and an increase in demand led to a boost in the price. Hence MCX aluminium futures saw the price going from Rs. 159.20 per kg to Rs. 259.35 per kg. It was a significant 63% raise from the previous year.
Thus, fluctuations in commodity market prices put aluminium at the top of the items to trade in 2022.
2022 has experienced a jump in business and trade activities from the beginning. And some commodities have caught the eyes of traders globally. The 5 of best are crude oil, natural gas, gold, silver, and aluminium. They are the best items one would like to trade in 2022. We hope you will find this article helpful for online commodity trading in India.
Visit the Piramal Finance website for more about trading, investment, and finance. We take care to suggest what’s financially best for you and help take care of your loan requirements if any.
Also Read: Top 10 Initial Public Offerings (IPO) Investing Strategy For 2022
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