Industry Metal Derivatives - Laos

Laos

The nominal value in the Industry Metal Derivatives market is projected to reach US$7.71bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.60% resulting in a projected total amount of US$9.20bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.03 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 284.40k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Laos is experiencing a notable shift in recent years.

Customer preferences: Investors in Laos are increasingly attracted to metal derivatives as they offer a diverse range of investment opportunities without the need for physical ownership of commodities. This financial instrument allows investors to speculate on the price movements of various metals, providing a flexible and potentially lucrative investment option.

Trends in the market: One significant trend in the Laos metal derivatives market is the growing interest in precious metals such as gold and silver. These metals are considered safe-haven assets and are often sought after during times of economic uncertainty. As global economic conditions remain volatile, investors in Laos are turning to precious metal derivatives as a way to hedge against inflation and market risks.

Local special circumstances: Laos' strategic location in Southeast Asia and its proximity to major metal-consuming countries like China make it an attractive market for metal derivatives trading. The country's stable economic growth and increasing foreign direct investment also contribute to the growing demand for metal derivatives among local investors. Additionally, the government's efforts to develop the financial market infrastructure have created a conducive environment for the expansion of the metal derivatives market in Laos.

Underlying macroeconomic factors: The macroeconomic stability and steady economic growth in Laos provide a favorable backdrop for the development of the metal derivatives market. As the country continues to attract foreign investment and diversify its economy, the demand for metal derivatives is expected to rise further. Moreover, the increasing integration of Laos into the global economy and the ongoing market reforms are likely to fuel the expansion of the metal derivatives market in the country.

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.