Commodities

Cyprus

The nominal value in Cyprus' Commodities market is forecasted to reach US$31.72bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.25%, resulting in a projected total amount of US$36.05bn by 2028.
The average price per contract in the Commodities market stands at US$0.07 in 2024.
From a global comparison perspective, it is noted that the highest nominal value is achieved the in the United States (US$45,690.00bn in 2024).
In Cyprus' Commodities market, the number of contracts is expected to reach 469.00k by 2028.
Cyprus is experiencing a surge in trading activity of commodity futures, reflecting growing investor interest in diversifying portfolios and managing risk.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Cyprus is experiencing a notable shift in recent years, reflecting changing customer preferences and adapting to local special circumstances.

Customer preferences: Customers in Cyprus are increasingly turning to Commodities as an investment option, seeking diversification and potentially higher returns. The appeal of Commodities lies in their ability to hedge against inflation and geopolitical risks, providing a sense of security in uncertain times.

Trends in the market: One of the key trends in the Cyprus Commodities market is the growing demand for energy-related derivatives. With Cyprus emerging as a regional energy player due to recent gas discoveries, there is a heightened interest in Commodities linked to the energy sector. Investors are closely monitoring developments in the energy market, looking for opportunities to capitalize on the country's evolving energy landscape.

Local special circumstances: Cyprus's strategic location at the crossroads of Europe, Africa, and the Middle East plays a significant role in shaping its Commodities market. The country's proximity to key trading partners and major shipping routes enhances its position as a trading hub for Commodities. Additionally, Cyprus's status as a financial services center attracts investors looking to access the Commodities market through established platforms.

Underlying macroeconomic factors: The performance of the Cyprus Commodities market is closely tied to global economic conditions, particularly fluctuations in commodity prices and currency exchange rates. As a small open economy, Cyprus is susceptible to external factors that can influence the demand and supply dynamics of Commodities. Economic indicators such as GDP growth, inflation rates, and trade policies have a direct impact on the overall health of the Commodities market in Cyprus.

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.