Industry Metal Derivatives - Iceland

Iceland

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$13.12bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.59% resulting in a projected total amount of US$15.65bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.05 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 297.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Metal Derivatives market in Iceland is experiencing a notable shift in recent years, driven by various factors shaping the global industry.

Customer preferences: Customers in Iceland are increasingly turning to Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these financial instruments lies in their ability to provide exposure to metal prices without the need for physical ownership.

Trends in the market: One prominent trend in the Icelandic Metal Derivatives market is the growing interest in precious metals such as gold and silver. Investors are seeking safe-haven assets amidst economic uncertainties, driving up the demand for these commodities in derivative form. Additionally, the rise of environmentally friendly initiatives is fueling demand for metals like copper, which is essential for renewable energy technologies.

Local special circumstances: Iceland's unique position as a country abundant in natural resources plays a significant role in shaping the Metal Derivatives market. The presence of geothermal energy sources has led to a focus on sustainable mining practices, influencing the perception of metal investments in the country. Moreover, Iceland's strategic location between Europe and North America positions it as a key player in the global metal market, attracting international investors looking to capitalize on the region's potential.

Underlying macroeconomic factors: The Icelandic Metal Derivatives market is also influenced by broader macroeconomic factors such as global trade dynamics, interest rates, and geopolitical events. Fluctuations in metal prices, driven by supply and demand fundamentals on a global scale, directly impact the performance of Metal Derivatives in Iceland. Additionally, regulatory changes and government policies play a crucial role in shaping the investment landscape for metal-based financial products in the country.

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.