Industry Metal Derivatives - Brazil

Brazil

The nominal value in the Industry Metal Derivatives market is projected to reach US$946.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.50% resulting in a projected total amount of US$1,124.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$1.82 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 547.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Brazil is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Investors and financial institutions in Brazil are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these derivatives lies in their ability to provide exposure to metal price movements without the need to physically own the commodities.

Trends in the market: One key trend in the Brazilian metal derivatives market is the growing popularity of gold and silver derivatives. These precious metals are seen as safe-haven assets during times of economic uncertainty, making them attractive options for investors looking to mitigate risk. Additionally, the demand for industrial metals such as copper and aluminum derivatives is on the rise due to the country's expanding manufacturing sector.

Local special circumstances: Brazil's rich reserves of natural resources, including metals like iron ore and nickel, make it a key player in the global metal derivatives market. The country's strong mining industry and robust infrastructure support the trading of metal derivatives, attracting both domestic and international investors looking to capitalize on the sector's growth potential.

Underlying macroeconomic factors: The growth of the metal derivatives market in Brazil is also influenced by macroeconomic factors such as inflation rates, exchange rates, and government policies. As the country continues to navigate economic challenges, investors are turning to metal derivatives as a strategic investment to safeguard their wealth and capitalize on market opportunities. Additionally, Brazil's position as a major emerging market in Latin America contributes to the overall attractiveness of the metal derivatives market in the region.

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.