Industry Metal Derivatives - Mexico

Mexico

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$677.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.74% resulting in a projected total amount of US$813.60bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$1.49 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 486.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Investors in Mexico are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The ease of trading metal derivatives compared to physical commodities is a key factor attracting customers looking to participate in the metal market without dealing with the complexities of physical delivery.

Trends in the market: One notable trend in the Mexican metal derivatives market is the growing interest in precious metals such as gold and silver. As global economic uncertainties persist, investors are seeking safe-haven assets, driving up the demand for these metal derivatives. Additionally, the increasing industrial applications of metals like copper are also fueling the demand for related derivatives in Mexico.

Local special circumstances: Mexico's position as a major producer of silver and copper plays a crucial role in shaping the metal derivatives market in the country. The close proximity to key mining regions provides local investors with unique insights and opportunities in trading metal derivatives based on the fluctuations in domestic production and global demand.

Underlying macroeconomic factors: The overall economic stability and growth in Mexico are supporting the expansion of the metal derivatives market. As the country continues to attract foreign investments and improve its regulatory framework, the confidence among investors in the Mexican market is increasing, leading to a higher participation in metal derivatives trading. Additionally, the government's focus on infrastructure development is driving the demand for industrial metals, further boosting the metal derivatives market in Mexico.

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.