Industry Metal Derivatives - Kenya

Kenya

The nominal value in the Industry Metal Derivatives market is projected to reach US$49.07bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.33% resulting in a projected total amount of US$60.65bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.17 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 317.10k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Kenya has been experiencing significant growth and development in recent years. Customer preferences in the metal derivatives market in Kenya are largely influenced by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors are increasingly turning to metal derivatives as a way to manage risk and potentially enhance returns in their financial portfolios. Trends in the market show a shift towards increased participation from institutional investors in metal derivatives trading in Kenya. This trend is driven by a growing awareness of the benefits of using derivatives for risk management and speculation purposes.

Additionally, technological advancements have made it easier for retail investors to access metal derivatives markets, further boosting market activity. Local special circumstances, such as Kenya's position as a key player in the East African economy, contribute to the development of the metal derivatives market in the country. The strategic location and economic stability of Kenya make it an attractive destination for investors looking to gain exposure to metal derivatives within the region.

Underlying macroeconomic factors, including currency fluctuations, inflation rates, and global metal prices, play a crucial role in shaping the metal derivatives market in Kenya. Economic indicators and geopolitical events can impact investor sentiment and drive demand for metal derivatives as a means of managing associated risks. Overall, the Industry Metal Derivatives market in Kenya is poised for continued growth as investors increasingly recognize the benefits of incorporating these financial instruments into their investment strategies.

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.