Industry Metal Derivatives - North America

North America

The nominal value in the Industry Metal Derivatives market is projected to reach US$4.16tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.52% resulting in a projected total amount of US$5.19tn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.10 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 43.54m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in North America is a dynamic and evolving sector driven by various factors.

Customer preferences: Investors in North America are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The ease of trading, liquidity, and potential for high returns are key factors driving customer preferences in this market.

Trends in the market: One notable trend in the North American metal derivatives market is the growing popularity of gold and silver contracts. As safe-haven assets, these metals are in high demand during times of economic uncertainty, making them attractive options for investors. Additionally, the increasing interest in environmentally friendly practices has led to a rise in the trading of metal derivatives linked to sustainable metals like copper and aluminum.

Local special circumstances: North America's well-established financial infrastructure and regulatory framework have contributed to the growth of the metal derivatives market in the region. The presence of major financial centers and a large pool of institutional investors further support the development of this market. Additionally, the region's strong industrial base and demand for metals in sectors such as automotive and construction create a favorable environment for metal derivative trading.

Underlying macroeconomic factors: The performance of the North American metal derivatives market is closely tied to global economic conditions and geopolitical events. Factors such as interest rates, inflation, trade policies, and currency fluctuations can significantly impact metal prices and, in turn, the derivatives market. As the region continues to navigate economic uncertainties and market fluctuations, the demand for metal derivatives is expected to remain robust.

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.