Industry Metal Derivatives - Malawi

Malawi

The nominal value in the Industry Metal Derivatives market is projected to reach US$4.84bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.43% resulting in a projected total amount of US$5.73bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.02 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 292.40k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Malawi is experiencing a notable shift in recent times.

Customer preferences: Investors in Malawi are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical assets.

Trends in the market: One of the key trends in the Malawian metal derivatives market is the growing interest in gold and silver contracts. As global economic uncertainty persists, investors are seeking safe-haven assets, driving up demand for precious metal derivatives. Additionally, the rise of industrial activities in the country is fueling the demand for base metal derivatives like copper and aluminum contracts.

Local special circumstances: Malawi's reliance on agricultural exports exposes the economy to fluctuations in commodity prices, making metal derivatives an attractive alternative investment option. The country's nascent financial market is also contributing to the growing popularity of metal derivatives as more investors seek opportunities beyond traditional asset classes.

Underlying macroeconomic factors: The stability of Malawi's currency and the government's efforts to improve regulatory frameworks are creating a conducive environment for the development of the metal derivatives market. Moreover, the increasing participation of foreign investors in the country's financial sector is bringing in expertise and capital, further driving the growth of the market.

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.