Commodities - Singapore

Singapore

The nominal value in the Commodities market is projected to reach US$421.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.57% resulting in a projected total amount of US$502.50bn by 2029.
The average price per contract in the Commodities market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 40.27m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Singapore has been experiencing a significant growth in trading volume and market activity.

Customer preferences: Traders in Singapore show a strong inclination towards investing in commodities due to their potential for high returns and diversification benefits. The market attracts a wide range of investors, from institutional players to individual retail investors, looking to capitalize on price movements in commodities such as oil, gold, and agricultural products.

Trends in the market: One noticeable trend in the Singapore Commodities market is the increasing demand for commodity futures and options as financial instruments for hedging and speculation. This trend is driven by the growing sophistication of market participants and their desire to manage risk more effectively. Additionally, there is a rising interest in environmental, social, and governance (ESG) factors, leading to the development of sustainable commodity investment products.

Local special circumstances: Singapore's strategic location as a global financial hub plays a crucial role in the development of its Commodities market. The country's well-established infrastructure, regulatory framework, and political stability attract market participants from around the world. Moreover, Singapore's strong focus on innovation and technology has led to the emergence of electronic trading platforms and advanced analytics tools, enhancing market efficiency and transparency.

Underlying macroeconomic factors: The robust economic growth and stable political environment in Singapore contribute to the favorable conditions for the Commodities market. As a key player in the Asia-Pacific region, Singapore benefits from the region's strong demand for commodities, driving trading activity in the market. Furthermore, the government's support for the development of financial markets and the promotion of Singapore as a commodities trading hub further boost the market's growth potential.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.