Industry Metal Derivatives - India

India

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$167.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.67% resulting in a projected total amount of US$190.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.01 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 22.31m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Metal Derivatives market in India is experiencing a significant growth trajectory.

Customer preferences: Customers in India 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 potential for high returns and the ability to speculate on price movements without owning the physical metal.

Trends in the market: One of the key trends in the Indian Metal Derivatives market is the growing interest from institutional investors, who are attracted to the liquidity and transparency offered by these instruments. Additionally, the introduction of new derivative products and trading strategies is further fueling the market growth, making it more accessible to a wider range of investors.

Local special circumstances: India's strong manufacturing sector and the country's increasing role in global supply chains are driving the demand for metal derivatives. As one of the world's largest consumers of metals such as steel and aluminum, India presents a lucrative market for investors looking to capitalize on the country's industrial growth.

Underlying macroeconomic factors: The Indian economy's resilience and steady growth are bolstering investor confidence in the Metal Derivatives market. Factors such as government reforms to improve ease of doing business, infrastructure development, and a young demographic with increasing disposable income are all contributing to the positive outlook for metal derivatives in India. Additionally, the country's strategic location and trade agreements with key global players are further enhancing its position as a hub for metal derivative trading in the region.

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.