Industry Metal Derivatives - Botswana

Botswana

The nominal value in the Industry Metal Derivatives market is projected to reach US$8.91bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.53% resulting in a projected total amount of US$10.60bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.03 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 294.70k by 2029.

Market

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Analyst Opinion

The Metal Derivatives market in Botswana is experiencing a notable shift in recent years, reflecting global trends and local economic conditions. Customer preferences in Botswana are increasingly inclined towards diversifying investment portfolios and hedging against market volatility.

This has led to a growing interest in Metal Derivatives as financial instruments that offer exposure to the price movements of various metals without the need for physical ownership. Trends in the market indicate a rising demand for Metal Derivatives in Botswana, driven by the country's growing economy and the need for risk management tools. Investors are turning to these derivatives to capitalize on price fluctuations in the metal markets and to protect their portfolios from potential losses.

Local special circumstances, such as the country's reliance on mining activities and its exposure to commodity price fluctuations, play a significant role in shaping the Metal Derivatives market in Botswana. The presence of a well-established mining sector provides a deep understanding of metal markets, making Metal Derivatives an attractive investment option for both institutional and retail investors. Underlying macroeconomic factors, including global metal prices, exchange rates, and geopolitical events, also influence the Metal Derivatives market in Botswana.

As a country with a small but growing financial market, Botswana is increasingly integrating into the global economy, making it more susceptible to external factors that impact metal prices and derivatives trading.

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.