Industry Metal Derivatives - Nordics

Nordics

The nominal value in the Industry Metal Derivatives market is projected to reach US$772.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.67% resulting in a projected total amount of US$925.20bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.48 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 1.77m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Nordics is experiencing a significant growth trajectory, driven by various factors influencing customer preferences and market trends.

Customer preferences: Customers in the Nordics are increasingly drawn towards investing in metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their ability to provide exposure to the metals market without the need for physical ownership.

Trends in the market: One key trend in the Nordics metal derivatives market is the growing demand for environmentally sustainable investments. This has led to an uptick in the trading of metal derivatives linked to environmentally friendly metals such as aluminum and copper. Additionally, the region's strong focus on innovation and technology is driving the development of new metal derivative products tailored to meet the evolving needs of investors.

Local special circumstances: The Nordics region is known for its robust regulatory framework and stable economic environment, making it an attractive destination for investors looking to trade metal derivatives. Furthermore, the presence of a well-established financial infrastructure and a high level of financial literacy among the population have contributed to the growing popularity of metal derivatives in the region.

Underlying macroeconomic factors: The overall economic stability and strong performance of the Nordics economies play a crucial role in shaping the metal derivatives market in the region. Factors such as GDP growth, inflation rates, and interest rates influence investor sentiment and drive demand for metal derivatives as a financial instrument for wealth preservation and growth. Additionally, geopolitical developments and global trade dynamics also impact metal prices and, in turn, the performance of metal derivatives in the Nordics 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.