Commodity Market
Commodity Market is a complex socio-economic category, the nature of which is revealed most fully, if we consider the market in various aspects of its manifestation. Firstly, the market acts as a sphere of commodity exchange. Secondly, is an economic activity, the system of organizational and economic actions, aimed at promotion of the goods from the manufacturer to the consumer. Such actions are associated, for example, with the development of a specific economic mechanism of production and realization of goods, forms and methods of sale, management decision on the marketing, conducting the advertising of goods, the study and the formation of demand and population.
Thus, the Commodity Market - this is the sphere of commodity exchange, which reveal the relations concerning the purchase and sale of goods and there is a specific economic activity associated with the sale of goods.
Components of the Commodity Market are:
•product offer;
•demand of the population;
•the price of the goods.
Product offer is a lot of goods for sale. The main sources of product offering is the production of goods in the country, inventories, import purchases.
Demand - it is a solvent demand of the population of the country. Demand is different from the request (desires) to the amount that could be paid by the consumers.
The price of the goods Commodity Market is a monetary expression of its value. The deviation of price from value attributed to several factors. First of all, it is the value of the expression of money. It depends, firstly, from the value of gold as a commodity, with the help of which expresses the value of all the goods. Secondly, the quantity of money in circulation, which may not correspond to the number of çàìåùàåìîìó their gold. Then there are differences in the use value, quality of the goods. Comparison of consumer properties of the goods affects the ratio of prices for some goods, their species and varieties. In addition, the terms of realization of the goods caused by the changes in the demand and supply affect the market price fluctuations. Factors influencing the formation of prices on the commodity market, we can classify the factors I and II of the order.
The activities of any Commodity Market is characterized by the main indicators. The main indicators of the functioning of the product market include the following.
1. The Capacity Of The Commodity Market. The market capacity is the maximum possible volume of sales of goods at a given level of solvent demand, commodity supply and retail prices.
2. Dynamics of development of individual industrial commodity markets of the country, constituting a single commodity market of the country.
3. The degree of diversification of Commodity Market. Under the diversified should understand the extent of coverage of different kinds of commodity products (by assortment and price), taking into consideration geographical, ethnic and solvent characteristics of the population of the country.
4. The quality of the goods sold on the Commodity Market. The quality of the goods to understand the totality of features, inherent in him. In conditions of tightening of the consumer is subject to special requirements in the context of the security of its consumption, compliance with environmental regulations, requirements for packaging, labeling and provision of after-sales service.
5. The competitiveness of goods on the market. A competitiveness of the goods to understand the ability of the products comply with the prevailing requirements of the market in the period under review.
The commodity market can be classified according to various characteristics. One of such characteristics may be geographical indication, in accordance with which it is possible to allocate markets of separate regions, each of them can be represented as a subsystem of the markets of individual countries and their groups. When this classification is not allocated to the trade aspect. In fact, this is the total market, uniting all sum of the individual commodity markets.
In accordance with the commodity-industry signs of a commodity market can be classified on the markets of finished products, the markets of raw materials and semi-manufactures, markets and services. Group commodity markets in the future can be broken down to the market level of the individual product. For example, the market of industrial raw materials includes the markets of iron, manganese, chrome ore, steel, rolled products, steel pipes, Nickel, platinum, precious metals, diamonds, chemicals, plastics, chemical fibres, medicines, etc. In the fuel market occupies a special place market of oil and oil products, as the latter are exchange-traded commodity and are the subject of trades through the oil commodity exchange.
Oil products belong to the category of goods, which economists call a «joint», i.e., any product of this category it is impossible to get without making the other.
