Industry Metal Derivatives - Hungary

Hungary

The nominal value in the Industry Metal Derivatives market is projected to reach US$87.65bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.09% resulting in a projected total amount of US$107.10bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.30 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 329.20k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Hungary has seen a notable increase in activity and interest in recent years. Customer preferences in the Hungarian metal derivatives market are shifting towards more diversified portfolios and risk management strategies.

Investors are increasingly looking for opportunities to hedge against volatility and diversify their investment options beyond traditional financial instruments. Trends in the market indicate a growing demand for metal derivatives as investors seek alternative assets to protect their portfolios from market uncertainties. The increased interest in metal derivatives can be attributed to their ability to offer a hedge against inflation and geopolitical risks, as well as providing opportunities for speculative trading.

Local special circumstances, such as Hungary's strong industrial sector and its reliance on metal imports for manufacturing, contribute to the growing popularity of metal derivatives in the country. The need to manage price risks associated with metal price fluctuations in the global market further drives the demand for these financial instruments among local businesses and investors. Underlying macroeconomic factors, including global metal prices, trade policies, and currency exchange rates, play a significant role in shaping the metal derivatives market in Hungary.

As the country's economy continues to integrate with global markets, the impact of external factors on domestic metal prices and demand for derivatives is becoming more pronounced. Additionally, regulatory developments and government policies also influence the growth and direction of the metal derivatives market in Hungary.

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.