Industry Metal Derivatives - Malaysia

Malaysia

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$65.78bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.52% resulting in a projected total amount of US$78.18bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.20 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 367.70k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Malaysia is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Investors in Malaysia are increasingly turning to metal derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of metal derivatives lies in their ability to provide exposure to price movements in metals without the need to physically own the commodities.

Trends in the market: One of the prominent trends in the Malaysian metal derivatives market is the growing popularity of gold derivatives. Gold has always been a traditional safe-haven asset, and in times of economic uncertainty, investors tend to flock towards it. As a result, the demand for gold derivatives in Malaysia has been on the rise. Additionally, with the increasing interest in sustainable investing, there is a growing demand for environmentally friendly metal derivatives such as those linked to recycled metals.

Local special circumstances: Malaysia's strategic location in Southeast Asia and its well-developed financial infrastructure make it an attractive market for metal derivatives trading. The country's strong regulatory framework and political stability provide a conducive environment for investors looking to participate in the metal derivatives market. Furthermore, the presence of a skilled workforce with expertise in financial products further enhances Malaysia's position as a hub for metal derivatives trading in the region.

Underlying macroeconomic factors: The Malaysian economy's resilience and steady growth have bolstered investor confidence in the metal derivatives market. Additionally, the government's efforts to promote Malaysia as a regional financial hub have attracted foreign investors looking to tap into the growing opportunities in the metal derivatives market. The country's robust economic fundamentals and stable currency also contribute to the attractiveness of the Malaysian metal derivatives market.

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.