Industry Metal Derivatives - Estonia

Estonia

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$17.42bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.66% resulting in a projected total amount of US$20.85bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.07 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 269.90k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Estonia reflects a growing interest in financial instruments tied to metal prices.

Customer preferences: Investors in Estonia show a preference for metal derivatives due to their potential for diversification and hedging against market volatility, aligning with global trends where investors seek alternative assets for portfolio management.

Trends in the market: The market in Estonia is witnessing an uptick in trading volumes of metal derivatives, driven by increased awareness among retail and institutional investors about the benefits of these financial instruments. This trend is in line with the broader European market, where derivative trading activities are on the rise.

Local special circumstances: Estonia's strategic location and status as a member of the European Union provide a stable regulatory environment for derivative trading, attracting both domestic and international investors to participate in the metal derivatives market. Additionally, the country's well-developed financial infrastructure and technological advancements facilitate easy access to trading platforms, contributing to the market's growth.

Underlying macroeconomic factors: Estonia's strong economic performance and stable political environment create a favorable backdrop for the metal derivatives market to thrive. The country's focus on innovation and technology also plays a significant role in shaping the market landscape, as investors leverage digital tools for trading and risk management. Furthermore, global macroeconomic factors, such as metal price fluctuations and geopolitical events, influence investor sentiment and trading activities in the Estonian market.

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.