Industry Metal Derivatives - Eastern Asia

Eastern Asia

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$3.85tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.14% resulting in a projected total amount of US$4.49tn 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 China (US$2.83tn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 568.40m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the dynamic landscape of Eastern Asia, the Industry Metal Derivatives market is experiencing notable growth and evolution. Customer preferences in Eastern Asia are increasingly leaning towards metal derivatives as a popular investment option due to their potential for high returns and portfolio diversification.

Investors in the region are attracted to the liquidity and flexibility that metal derivatives offer, allowing them to hedge against market volatility and capitalize on price fluctuations in the global metal markets. Trends in the market show a growing demand for metal derivatives in countries like China and Japan, driven by the industrial sector's need for risk management tools and speculation opportunities. China, being one of the largest consumers of metals, plays a significant role in shaping the metal derivatives market in the region.

The increasing integration of Eastern Asian economies with the global market is also fueling the demand for metal derivatives as investors seek exposure to international metal prices. Local special circumstances, such as regulatory frameworks and market infrastructure, play a crucial role in the development of the metal derivatives market in Eastern Asia. Countries like South Korea and Taiwan are actively promoting derivatives trading by enhancing market transparency and implementing investor-friendly regulations.

These initiatives are boosting investor confidence and attracting more participants to the metal derivatives market in the region. Underlying macroeconomic factors, including economic growth, geopolitical stability, and currency movements, are influencing the metal derivatives market in Eastern Asia. As the region continues to experience robust economic expansion, the demand for metals for industrial and infrastructure projects is expected to rise, driving the need for effective risk management tools like metal derivatives.

Geopolitical tensions and currency fluctuations also create opportunities for investors to hedge their exposure through metal derivatives, adding to the market's growth potential.

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.