Industry Metal Derivatives - Chile

Chile

The nominal value in the Industry Metal Derivatives market is projected to reach US$123.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.28% resulting in a projected total amount of US$151.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.39 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 317.80k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Chile has been experiencing a notable uptrend in recent years, reflecting a growing interest in financial instruments related to metal commodities.

Customer preferences: Investors and financial institutions in Chile have shown a strong inclination towards diversifying their portfolios by including metal derivatives. This preference is driven by the perceived stability and potential for high returns that metal derivatives offer, especially in times of economic uncertainty.

Trends in the market: One of the prominent trends in the Chilean metal derivatives market is the increasing demand for derivatives linked to copper, given Chile's significant role as a global copper producer. Investors are keen on leveraging the price fluctuations of copper through derivatives to maximize their investment opportunities. Additionally, there is a rising interest in other metal derivatives such as gold and silver, indicating a broader spectrum of investment choices in the market.

Local special circumstances: Chile's heavy reliance on metal exports, particularly copper, has a direct impact on the metal derivatives market. The country's economic stability is closely tied to metal prices, making metal derivatives an attractive option for investors looking to hedge against price volatility. Moreover, the well-established mining industry in Chile contributes to a favorable environment for trading metal derivatives, with ample expertise and resources available in the market.

Underlying macroeconomic factors: The overall economic landscape in Chile, including factors like inflation rates, interest rates, and government policies, plays a crucial role in shaping the metal derivatives market. Changes in these macroeconomic indicators can influence investor sentiment and drive the demand for metal derivatives. Additionally, global economic conditions and geopolitical events also have a significant impact on metal prices, further influencing the dynamics of the metal derivatives market in Chile.

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.