Industry Metal Derivatives - Mongolia

Mongolia

The nominal value in the Industry Metal Derivatives market is projected to reach US$7.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.64% resulting in a projected total amount of US$8.85bn 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 293.70k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Mongolia is experiencing a gradual but steady growth trajectory. Customer preferences in the metal derivatives market in Mongolia are influenced by the global trend towards diversification and risk management strategies.

Investors and businesses in Mongolia are increasingly looking to hedge against price fluctuations in the metal derivatives market to protect their investments and manage financial risks. Trends in the market show a growing interest in metal derivatives as a financial instrument for speculation and portfolio diversification among Mongolian investors. The market is witnessing an uptick in trading volumes and liquidity, indicating a maturing market environment.

Additionally, there is a noticeable shift towards electronic trading platforms for metal derivatives, providing investors in Mongolia with easier access to global markets and real-time pricing information. Local special circumstances in Mongolia, such as the country's significant mineral resources and mining industry, play a crucial role in driving the demand for metal derivatives. Mongolia's mineral-rich landscape creates a natural synergy with the metal derivatives market, as investors seek exposure to the price movements of key metals like copper, gold, and coal.

Underlying macroeconomic factors, including Mongolia's economic growth, political stability, and regulatory environment, also contribute to the development of the metal derivatives market in the country. As Mongolia continues to attract foreign investments in its mining sector and diversify its economy, the demand for metal derivatives as a financial tool for risk management and investment opportunities is expected to grow further.

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.