Industry Metal Derivatives - Costa Rica

Costa Rica

The nominal value in the Industry Metal Derivatives market is projected to reach US$34.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.58% resulting in a projected total amount of US$41.02bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.13 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 272.40k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

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

Customer preferences: Costa Rican customers are increasingly turning to metal derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of metal derivatives lies in their ability to provide exposure to the commodities market without the need to physically own the underlying assets.

Trends in the market: One of the key trends in the Costa Rican metal derivatives market is the growing interest in precious metals such as gold and silver. Investors in Costa Rica are drawn to the stability and long-term value retention offered by these metals. Additionally, there is a rising demand for base metals derivatives like copper and aluminum, driven by the country's expanding industrial sector.

Local special circumstances: Costa Rica's stable political environment and robust economic growth are creating a conducive atmosphere for the development of the metal derivatives market. The country's strategic location in Central America also positions it as a key player in the regional commodities trading landscape, attracting both domestic and international investors.

Underlying macroeconomic factors: The increasing integration of Costa Rica into the global economy, coupled with favorable government policies promoting foreign investment, is fueling the growth of the metal derivatives market. Additionally, the country's strong regulatory framework and emphasis on investor protection are instilling confidence among market participants, further driving the expansion of the industry.

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.