Industry Metal Derivatives - New Zealand

New Zealand

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$95.46bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.17% resulting in a projected total amount of US$117.10bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.32 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 341.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in New Zealand is experiencing a notable shift in recent years.

Customer preferences: Investors in New Zealand are increasingly attracted to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The accessibility and liquidity of these financial instruments appeal to a wide range of investors, from individual traders to institutional players.

Trends in the market: One prominent trend in the New Zealand metal derivatives market is the growing interest in precious metals such as gold and silver. As global economic uncertainties persist, investors are turning to these safe-haven assets to protect their wealth. Additionally, there is a rising demand for base metals derivatives due to the country's strong ties to the mining industry.

Local special circumstances: New Zealand's metal derivatives market is also influenced by its unique geographical position as a major exporter of minerals. The country's mining sector plays a significant role in driving demand for metal derivatives, as companies seek to manage their price risk in a volatile market environment. Moreover, the country's robust regulatory framework provides a secure and transparent trading environment for investors.

Underlying macroeconomic factors: The performance of the New Zealand metal derivatives market is closely linked to global economic conditions and metal prices. Factors such as interest rates, inflation, and geopolitical events can impact the market dynamics and investor sentiment. As New Zealand continues to strengthen its position as a key player in the global commodities market, the metal derivatives sector is expected to witness further growth and innovation.

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.