Industry Metal Derivatives - Belgium

Belgium

The nominal value in the Industry Metal Derivatives market is projected to reach US$269.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.47% resulting in a projected total amount of US$319.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.76 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 399.40k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Belgium is experiencing a notable shift in customer preferences towards more diversified investment options.

Customer preferences: Investors in Belgium are increasingly seeking alternative investment opportunities to diversify their portfolios and hedge against market volatility. This shift in preferences is driving the demand for metal derivatives as financial instruments that provide exposure to the price movements of various metals without the need for physical ownership.

Trends in the market: One of the key trends in the metal derivatives market in Belgium is the growing interest in precious metals such as gold and silver. Investors view these metals as safe-haven assets during times of economic uncertainty, leading to an uptick in trading volumes for precious metal derivatives. Additionally, there is a rising demand for base metal derivatives, driven by the growing industrial sector in Belgium and the broader European region.

Local special circumstances: Belgium's strategic location as a major trading hub in Europe plays a significant role in shaping the metal derivatives market. The country's well-established financial infrastructure and regulatory framework attract investors looking to access the European market through metal derivatives. Moreover, Belgium's strong ties with neighboring countries create a conducive environment for trading metal derivatives across borders.

Underlying macroeconomic factors: The economic stability and steady growth in Belgium contribute to the overall positive sentiment in the metal derivatives market. As the country continues to attract foreign investments and foster innovation in key industries, investors are more inclined to explore metal derivatives as part of their investment strategy. Additionally, Belgium's position within the European Union provides access to a larger market, further fueling the demand for metal derivatives among local 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.