Global supply and demand dynamics play a major role in influencing commodity prices on the ASX. When global demand for commodities like iron ore, gold, or oil rises—especially from major economies—prices tend to increase, benefiting ASX-listed resource companies. On the supply side, disruptions such as weather events or geopolitical tensions can reduce availability, pushing prices higher. Positive global economic activity generally supports strong demand, creating favorable conditions for Australian commodity exporters and adding momentum to the ASX commodity sector.