Commodities play a crucial role in Asian economies — most Asian countries are major commodity importers.

Key Commodity Relationships

CommodityImpact on Asia
Oil (WTI/Brent)Japan, India, Korea = major importers. Rising oil = negative
GoldIndia = world's largest consumer. Safe haven demand
CopperChina = 50% of global demand. Economic barometer
Iron OreChina, Japan = biggest buyers for steel production
Palm OilIndonesia, Malaysia = largest producers
NickelIndonesia = 50% of global supply (EV batteries)
LNGJapan = world's largest LNG importer

Commodity Exporters vs Importers

Exporters (benefit from high prices):

  • Indonesia (palm oil, nickel, coal)
  • Malaysia (palm oil, LNG)

Importers (hurt by high prices):

  • Japan (oil, LNG, all raw materials)
  • India (oil, gold)
  • South Korea (oil, iron ore)
  • China (oil, iron ore, copper)