What commodities are traded in the United Kingdom?

What commodities are traded in the United Kingdom?

 

The United Kingdom is a small nation in Europe that is home to the world’s 6th largest economy. Although it may seem like their main focus is international affairs, there are many commodities traded between the UK and other countries every day.

 

The most common commodity traded across borders in the United Kingdom are cars, which made up roughly 20% of all goods exported from this country in 2014. To give some perspective on how much revenue this brings in for companies exporting these automobiles overseas,

 

Ford exports an estimated one-third of its total production of cars annually from its plant located in Dagenham, England. The Royal Mint also trades gold bullion internationally, bringing around £1 billion each year by minting gold bars into different shapes and sizes.

 

The commodities traded in the United Kingdom are vast 

The primary commodities traded include oil, gold, silver, copper, corn, wheat, and soybeans.

 

  • Oil is a globally popular commodity and is critical in many industries. The United Kingdom is a crucial player in the global oil market due to its strategic location and large refining capacity.
  • Gold is another critical commodity that is often traded around the world. The UK is one of the biggest gold markets globally, with London being one of the most important centres for gold trading.
  • Silver is another precious metal that is often traded globally. The United Kingdom is a significant player in the global silver market, with London being one of the most important centres for silver trading.
  • Copper is another critical commodity that is traded globally. The United Kingdom is a large copper producer and exporter, making it a key player in the global copper market.
  • Corn is a staple crop in many countries around the world. The United Kingdom is a significant exporter of corn, making it a key player in the global corn market.
  • Wheat is also a staple crop in many countries. The United Kingdom is a significant exporter of wheat, making it a key player in the global wheat market.
  • Soybeans are an essential crop in many countries. The United Kingdom is a significant importer of soybeans, making it a key player in the global soybean market.

 

In addition to these five most traded commodities, there is a large variety of other commodities traded internationally. These include cocoa, coffee, cotton, sugar, rubber and tobacco.

 

  • Cocoa is another key agricultural crop that has been traded for centuries. The United Kingdom is a significant importer of cocoa, making it a key player in the global cocoa market.
  • Coffee is another popular beverage crop. The United Kingdom is a significant importer of coffee as British consumers drink copious coffee daily.
  • Cotton is a necessary commodity used in many countries worldwide for clothing purposes. The United Kingdom is one of the largest cotton producers and exporters, making it a key player in the global cotton market.
  • Sugar is a sweetener that is used in many countries. The United Kingdom is a significant importer of sugar, making it a key player in the global sugar market.
  • Rubber is a necessary commodity used in many industries. The United Kingdom is a significant exporter of rubber, making it a key player in the global rubber market.
  • Tobacco is grown in many countries around the world. The United Kingdom is a significant exporter of tobacco, making it a key player in the global tobacco market.

 

The UK is also a significant exporter of steel to other countries and brought in over £3 billion by selling 3 million tons to international markets in 2015. This means that for every 1000 kg of steel exported to another country that year, the company exporting it made just under $19,000 US dollars per metric ton.

 

In conclusion

The commodities traded in the United Kingdom are vast and varied, making it essential to trade with the United Kingdom. The country is an essential global player due to its strategic location, large refining capacity and large consumer market.

 

If you are interested in trading commodities in the UK, Saxo has a team of professional brokers that can get you started in your trading journey.