Industry Metal Derivatives - Sierra Leone

Sierra Leone

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$361.90m 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$433.80m by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.00 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 288.50k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Sierra Leone is experiencing a notable shift in recent years.

Customer preferences: Customers in Sierra Leone are increasingly showing interest in diversifying their investment portfolios by including metal derivatives. This trend is in line with global market movements where investors seek alternative assets for hedging and speculation purposes.

Trends in the market: The market for metal derivatives in Sierra Leone is witnessing a steady growth trajectory as more investors are becoming aware of the potential benefits of these financial instruments. The increasing participation of institutional investors and the growing number of financial institutions offering metal derivative products are contributing to this upward trend.

Local special circumstances: Sierra Leone's economy, which heavily relies on mining activities, plays a significant role in driving the demand for metal derivatives in the country. The volatility in metal prices and the need for risk management tools are pushing market participants to explore derivative instruments to hedge against price fluctuations.

Underlying macroeconomic factors: The stability of the country's political environment and regulatory framework is crucial for the development of the metal derivatives market in Sierra Leone. As the government continues to focus on economic diversification and financial market development, the demand for metal derivatives is expected to further increase. Additionally, factors such as inflation rates, currency exchange fluctuations, and global economic conditions also influence the growth of the market.

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.