Industry Metal Derivatives - Romania

Romania

The nominal value in the Industry Metal Derivatives market is projected to reach US$138.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.69% resulting in a projected total amount of US$165.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.45 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 323.30k by 2029.

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Analyst Opinion

Amidst the growing demand for metal derivatives in Romania, the market is witnessing a shift in customer preferences towards more diversified investment options.

Customer preferences: Investors in Romania are increasingly turning to metal derivatives as a means to diversify their investment portfolios and hedge against market volatility. With a growing awareness of the benefits of derivatives in managing risk, customers are showing a preference for these financial instruments over traditional investment avenues.

Trends in the market: One notable trend in the metal derivatives market in Romania is the increasing interest in gold and silver derivatives. As safe-haven assets, gold and silver derivatives are becoming popular among investors looking to protect their wealth during times of economic uncertainty. Additionally, the demand for base metal derivatives, such as copper and aluminum, is also on the rise due to their widespread industrial applications.

Local special circumstances: Romania's strong industrial sector and mining industry play a significant role in driving the demand for metal derivatives in the country. The presence of metal extraction and processing companies creates a conducive environment for the trading of metal derivatives. Moreover, the country's strategic location in Eastern Europe makes it a favorable market for investors looking to gain exposure to metal derivatives in the region.

Underlying macroeconomic factors: The overall economic stability and growth prospects in Romania are contributing to the positive momentum in the metal derivatives market. As the economy continues to expand, investors are seeking alternative investment opportunities, with metal derivatives emerging as a lucrative option. Additionally, favorable government policies and regulatory frameworks are providing a supportive environment for the development of the derivatives market in the country.

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.