Industry Metal Derivatives - BRICS

BRICS

The nominal value in the Industry Metal Derivatives market is projected to reach US$5.95tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.86% resulting in a projected total amount of US$6.85tn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.01 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 592.00m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in BRICS has been experiencing significant growth and development in recent years. Customer preferences in the BRICS region are shifting towards investing in metal derivatives as a way to diversify portfolios and hedge against market volatility.

Investors are increasingly attracted to the potential for high returns offered by metal derivatives, especially in emerging markets like those in the BRICS grouping. Trends in the market vary across the BRICS countries. For instance, Brazil is seeing a rise in demand for metal derivatives due to its strong mining industry, while Russia is experiencing increased interest in precious metal derivatives as a safe haven investment.

In India, there is a growing trend of retail investors participating in the metal derivatives market, driven by the ease of online trading platforms. China, on the other hand, is focusing on expanding its base metal derivatives market to meet the demands of its manufacturing sector. Local special circumstances in each BRICS country also play a significant role in shaping the metal derivatives market.

For example, in South Africa, the mining industry has a direct impact on the availability and pricing of metal derivatives. In Russia, government regulations and geopolitical factors can influence the market dynamics for metal derivatives. India's large population of individual investors and strong commodity trading culture contribute to the growth of the metal derivatives market in the country.

Underlying macroeconomic factors such as global metal prices, currency fluctuations, and trade policies also have a substantial impact on the metal derivatives market in the BRICS region. Economic growth, inflation rates, and interest rates in each country can influence investor sentiment and drive demand for metal derivatives as a financial instrument for speculation and risk management.

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.