Industry Metal Derivatives - G7

The nominal value in the Industry Metal Derivatives market is projected to reach US$5.49tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.40% resulting in a projected total amount of US$6.81tn 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 45.33m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in G7 countries is a dynamic and evolving sector influenced by various factors.

Customer preferences: Customers in G7 countries show a growing interest in metal derivatives as an investment tool due to their ability to diversify portfolios and hedge against market risks. With a strong focus on financial instruments, investors in these countries are increasingly turning to metal derivatives to capitalize on price movements in the commodities market.

Trends in the market: In the United States, the largest economy in the G7, the metal derivatives market is experiencing a surge in trading activity driven by the fluctuating prices of precious metals. Investors are closely monitoring geopolitical events and economic indicators to make informed decisions in this volatile market. Similarly, in Japan, there is a growing demand for base metal derivatives as the country's manufacturing sector continues to expand, creating opportunities for investors to leverage these instruments.

Local special circumstances: In the United Kingdom, Brexit has introduced uncertainties that are impacting the metal derivatives market. Investors are closely watching developments in trade agreements and regulatory changes to navigate the evolving landscape. Meanwhile, in Germany, a strong industrial base is driving demand for metal derivatives as companies seek to manage their exposure to price fluctuations in raw materials.

Underlying macroeconomic factors: The economic stability and growth prospects of G7 countries play a significant role in shaping the metal derivatives market. Factors such as interest rates, inflation, and currency movements influence investor sentiment and trading patterns. Additionally, government policies and global trade dynamics can have ripple effects on metal prices, impacting the overall derivatives market in these countries.

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.