Industry Metal Derivatives - Iran

Iran

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$2.96bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.70% resulting in a projected total amount of US$3.38bn 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 China (US$2.83tn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 8.92k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Iran, known for its rich history and culture, is also making significant strides in the Industry Metal Derivatives market.

Customer preferences: Customers in Iran are increasingly turning to metal derivatives as a way to diversify their investment portfolios and hedge against market volatility. The attractiveness of metal derivatives lies in their ability to provide exposure to the price movements of various metals without the need for physical ownership.

Trends in the market: One notable trend in the Iranian metal derivatives market is the growing interest in gold and copper derivatives. Gold, traditionally seen as a safe haven asset, is sought after by investors looking to protect their wealth during times of uncertainty. Copper, on the other hand, is in high demand due to its widespread use in industrial applications, making it an attractive option for investors looking to capitalize on economic growth.

Local special circumstances: Iran's metal derivatives market is also influenced by local factors such as government regulations and geopolitical tensions. The government plays a significant role in regulating the commodities market, which can impact trading volumes and price movements. Geopolitical tensions in the region can also lead to fluctuations in metal prices, creating both risks and opportunities for investors in the market.

Underlying macroeconomic factors: The development of Iran's metal derivatives market is closely tied to macroeconomic factors such as inflation, interest rates, and overall economic stability. Inflationary pressures can drive up the prices of metals, making derivatives an appealing investment option for those looking to hedge against rising prices. Additionally, changes in interest rates can impact the cost of holding derivatives positions, influencing trading activity in the market. Overall economic stability plays a crucial role in shaping investor sentiment and confidence in the metal derivatives market.

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.