Industry Metal Derivatives - Finland

Finland

The nominal value in the Industry Metal Derivatives market is projected to reach US$143.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.39% resulting in a projected total amount of US$169.30bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.46 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 350.40k by 2029.

Market

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Currency

Analyst Opinion

The Industry Metal Derivatives market in Finland is experiencing a shift in customer preferences towards more diversified investment options.

Customer preferences: Finland's investors are increasingly looking for alternative investment opportunities beyond traditional stocks and bonds. This shift in preferences is driven by the desire to diversify portfolios and mitigate risks. As a result, there is a growing interest in metal derivatives as a way to hedge against market volatility and inflation.

Trends in the market: The market for metal derivatives in Finland is witnessing a steady growth as investors seek exposure to commodities without the need for physical ownership. This trend is fueled by the increasing popularity of metals like gold and silver as safe-haven assets during times of economic uncertainty. Additionally, the ease of trading metal derivatives through online platforms has made them more accessible to a wider range of investors in the country.

Local special circumstances: Finland's strong industrial sector and mining activities play a significant role in shaping the metal derivatives market. The demand for derivatives linked to industrial metals such as copper and aluminum is influenced by the performance of these sectors. Moreover, the country's focus on sustainability and green initiatives is driving interest in derivatives related to precious metals used in renewable energy technologies.

Underlying macroeconomic factors: The stability of Finland's economy and its position within the Eurozone contribute to the attractiveness of metal derivatives as a financial instrument. Investors view these derivatives as a way to diversify their portfolios while benefiting from the potential price movements in the global metal markets. Additionally, the low-interest-rate environment in the region is prompting investors to explore alternative assets like metal derivatives to seek higher returns.

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.