Industry Metal Derivatives - Australia

Australia

The nominal value in the Industry Metal Derivatives market is projected to reach US$623.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.37% resulting in a projected total amount of US$735.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$1.27 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 552.40k by 2029.

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Analyst Opinion

Amidst the vast natural resources of Australia, the Industry Metal Derivatives market in the country has been witnessing significant developments and trends.

Customer preferences: In Australia, customers in the metal derivatives market are increasingly leaning towards a more diversified portfolio. With a growing interest in alternative investments, customers are exploring metal derivatives as a way to hedge against market volatility and diversify their investment portfolios.

Trends in the market: One prominent trend in the Australian metal derivatives market is the increasing demand for gold derivatives. As a traditional safe-haven asset, gold derivatives have gained popularity among investors looking to protect their wealth during times of economic uncertainty. This trend is in line with global market dynamics, where gold is often seen as a safe asset in times of market turbulence.

Local special circumstances: Australia's strong mining industry plays a significant role in shaping the metal derivatives market in the country. The abundance of natural resources, including gold, silver, and copper, provides a solid foundation for the development of a robust metal derivatives market. Additionally, Australia's proximity to Asia and its strong trade relationships in the region also contribute to the growth of the metal derivatives market.

Underlying macroeconomic factors: The stability of the Australian economy and its strong regulatory framework make it an attractive destination for investors looking to participate in the metal derivatives market. The country's well-developed financial infrastructure and transparent market practices provide a conducive environment for the growth of the industry. Additionally, Australia's strategic location in the Asia-Pacific region positions it as a key player in the global metal derivatives market, attracting both domestic and international investors.

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.