SGX posts November commodity derivatives volumes climbed amid China and Omicron concerns

SGX building on Shenton Way in SingaporeSGX building on Shenton Way in Singapore

Singapore Exchange (SGX) reported Friday that November volumes for commodity derivatives climbed as price swings in the physical market drove risk management trading.

“Key themes across the various markets during the month included China’s exports data and the outlook for its property developers, the emergence in several countries of a new Covid-19 variant Omicron, increasing inflationary pressures and supply chain bottlenecks worldwide,” SGX said in a statement filed to the exchange.

“Price swings stemming from bearish demand conditions and restocking optimism in the physical iron ore market drove higher price hedging activity as well as volatility in freight rates,” SGX said.

Total commodities derivatives volume for November climbed 52 percent on-year to 2.3 million contracts on strong growth in the virtual steel mill suite, the filing said.

Iron ore derivatives volume rose 54 percent on-year to 1.9 million contracts, while volume in forward freight agreements, which allow market participants to manage bulk cargo and freight risks, jumped 115 percent on-year to 178,067 contracts, SGX said.

Read SGX’s market statistics report for November.