Industry Metal Derivatives - Lebanon

Lebanon

The nominal value in the Industry Metal Derivatives market is projected to reach US$10.29bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.92% resulting in a projected total amount of US$12.47bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.04 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 276.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Lebanon has seen a steady increase in activity and interest in recent years.

Customer preferences: Investors in Lebanon have shown a growing interest in diversifying their portfolios by including metal derivatives. This can be attributed to the potential for high returns and the ability to hedge against market volatility.

Trends in the market: One prominent trend in the Lebanese metal derivatives market is the increasing demand for gold derivatives. Gold is often seen as a safe haven asset during times of economic uncertainty, making it a popular choice among investors in Lebanon looking to protect their wealth. Additionally, there has been a rise in the trading of silver derivatives, driven by both investment and industrial demand.

Local special circumstances: Lebanon's unique geopolitical situation and economic challenges have also influenced the metal derivatives market. The country's history of political instability and currency fluctuations have led investors to seek alternative investment options like metal derivatives to safeguard their assets.

Underlying macroeconomic factors: The economic conditions in Lebanon, including high inflation rates and currency devaluation, have contributed to the growing popularity of metal derivatives. Investors are turning to these financial instruments as a way to protect their wealth and navigate the uncertain economic landscape in the country. Additionally, the lack of traditional investment opportunities has pushed investors towards alternative assets like metal derivatives.

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.