Industry Metal Derivatives - Pakistan

Pakistan

The nominal value in the Industry Metal Derivatives market is projected to reach US$6.13bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.50% resulting in a projected total amount of US$7.64bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.02 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 362.50k by 2029.

Market

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Analyst Opinion

Amidst the evolving landscape of financial markets in Pakistan, the Metal Derivatives market is experiencing notable developments. Customer preferences in the Metal Derivatives market in Pakistan are influenced by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors are increasingly looking for alternative investment options beyond traditional avenues, driving the demand for metal derivatives as a strategic financial tool. Trends in the market indicate a rising adoption of metal derivatives as a means to manage risk exposure and capitalize on price fluctuations in the global metal markets. With the integration of advanced trading technologies and increased accessibility to financial instruments, market participants in Pakistan are leveraging metal derivatives to enhance their investment strategies.

Local special circumstances, such as geopolitical factors and regulatory changes, play a significant role in shaping the Metal Derivatives market in Pakistan. The country's geopolitical environment and government policies impact market sentiment and investment decisions, influencing the demand for metal derivatives among local investors and institutions. Underlying macroeconomic factors, including inflation rates, currency fluctuations, and global economic trends, also contribute to the dynamics of the Metal Derivatives market in Pakistan.

Economic indicators and market conditions both domestically and internationally influence the pricing and trading activities of metal derivatives, reflecting the interconnected nature of the global financial system.

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.