With commodity-linked structured products gaining traction among Asian investors, investment houses are looking to increase commodities teams in the first quarter of next year.

The Asian market for commodity derivatives is still very much in its infancy, with industry watchers valuing it at less than a tenth of the global market of US$200bn.

“Banks with a trading operation in Singapore and Hong Kong will be hiring. There’s always going to be demand for sales people and traders, given that we’re in an economic up-cycle for commodities,” says Ash Bhula, client partner at search firm Korn/Ferry International.

UBS has tripled the number of people in Asia dedicated to commodities in the past year, and is reportedly planning to add new structurers in agriculture, energy and metals.

A commodity derivatives trader based in Hong Kong or Singapore can expect to command a base salary of between US$200k and US$300k. In terms of bonuses, they will “normally get anywhere between 10% and 15% of whatever they generate in terms of revenue”, he says.

Lionel Lee, assistant regional director Asia at global HR services company Ross Human Directions, notes that people who trade commodities are themselves a rare commodity.

“The talent pool of experienced traders is thin and the community has been very small. This is partly the result of poorer performance of commodity markets in the past decade compared to other financial services industry products,” he says.