Industry Metal Derivatives - Israel

The nominal value in the Industry Metal Derivatives market is projected to reach US$188.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.66% resulting in a projected total amount of US$225.10bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.55 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 383.80k by 2029.

Definition:

The Industrial Metal Derivatives market refers to derivatives of industrial metals such as copper or aluminum. These include financial vehicles such as options & futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of copper, an investor could own a derivative of copper). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular Industrial metal derivatives are copper, aluminum, or iron.

Industry Metal Derivatives, e.g. Copper, Zinc, Iron

Physical industry metals

The Industry Metal Derivatives market in Israel has been experiencing significant growth and development in recent years. Customer preferences in the Metal Derivatives market in Israel are shifting towards more diversified investment portfolios, seeking higher returns in a volatile market environment.

Trends in the market show an increasing demand for Metal Derivatives products in Israel, driven by the growing interest from both institutional and retail investors looking to hedge against inflation and geopolitical uncertainties. Local special circumstances in Israel, such as the country's strong technology sector and innovative financial ecosystem, have contributed to the development of sophisticated Metal Derivatives products tailored to the needs of local investors. Underlying macroeconomic factors, including Israel's stable economic growth, favorable regulatory environment, and increasing integration with global financial markets, have created a conducive environment for the expansion of the Metal Derivatives market 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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.