Industry Metal Derivatives - Bangladesh

Bangladesh

The nominal value in the Industry Metal Derivatives market is projected to reach US$22.21bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.21% resulting in a projected total amount of US$24.78bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.07 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 343.80k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Bangladesh is experiencing a significant growth trajectory.

Customer preferences: Investors in Bangladesh are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning physical assets.

Trends in the market: One prominent trend in the Bangladeshi metal derivatives market is the growing interest in gold derivatives. Gold has always been a popular investment choice in the country due to its cultural significance and perceived stability. As a result, there is a rising demand for gold futures and options among local investors looking to capitalize on price fluctuations in the precious metal market.

Local special circumstances: Bangladesh's limited access to traditional investment avenues, coupled with a growing economy and a burgeoning middle class, has created a conducive environment for the expansion of the metal derivatives market. The lack of sophisticated financial products and the historical preference for physical assets like gold have paved the way for the increasing popularity of metal derivatives as a modern investment option.

Underlying macroeconomic factors: The overall economic growth in Bangladesh, along with favorable government policies and regulatory frameworks, has contributed to the development of the metal derivatives market. As the country continues to integrate with global financial markets and attract foreign investments, the demand for metal derivatives is expected to rise further. Additionally, the stability of the local currency and the steady influx of remittances are bolstering investor confidence in the financial markets, including metal derivatives.

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.