Industry Metal Derivatives - Asia

Asia

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$5.42tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.21% resulting in a projected total amount of US$6.34tn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached China (US$2.83tn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 637.50m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Asia continues to show promising growth and development, reflecting the region's increasing participation in global financial markets. Customer preferences in the Asian metal derivatives market are largely influenced by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors in the region are increasingly looking to leverage metal derivatives to manage risk and capitalize on price fluctuations in the commodities market. Trends in the market vary across different countries in Asia. For example, in China, the world's largest consumer of metals, there is a significant demand for metal derivatives as a tool for speculation and risk management in the face of fluctuating metal prices.

In India, a major producer of metals, the focus is more on using derivatives for price discovery and hedging against raw material price volatility in industries such as automotive and construction. Local special circumstances, such as regulatory frameworks and market infrastructure, play a crucial role in shaping the metal derivatives market in Asia. Countries like Japan and Singapore have well-established derivatives exchanges and regulatory frameworks that attract a significant amount of trading activity.

On the other hand, emerging markets like Vietnam and Indonesia are witnessing a gradual shift towards more sophisticated financial products, including metal derivatives, as their economies continue to grow. Underlying macroeconomic factors, such as global trade dynamics, geopolitical tensions, and economic growth prospects, also impact the metal derivatives market in Asia. The region's strong industrial base and increasing urbanization drive demand for metals, influencing derivative prices and trading volumes.

Additionally, currency fluctuations and interest rate movements can further impact investor sentiment and trading strategies in the metal derivatives market.

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.