Industry Metal Derivatives - Singapore

Singapore

The nominal value in the Industry Metal Derivatives market is projected to reach US$158.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.83% resulting in a projected total amount of US$190.70bn 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 in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 37.05m by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Singapore is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Investors in Singapore are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. With a growing interest in alternative investments, metal derivatives offer a unique opportunity for investors to participate in the commodities market without the need for physical ownership.

Trends in the market: One of the key trends in the Industry Metal Derivatives market in Singapore is the rising demand for precious metal derivatives such as gold and silver. These metals are viewed as safe-haven assets during times of economic uncertainty, making them attractive to investors looking to protect their wealth. Additionally, industrial metal derivatives like copper are also gaining popularity due to their essential role in various industries.

Local special circumstances: Singapore's strategic location as a global financial hub plays a crucial role in the development of the metal derivatives market. The country's well-established regulatory framework and infrastructure make it an attractive destination for investors looking to access the commodities market. Furthermore, Singapore's stable political environment and strong rule of law provide a sense of security for investors engaging in metal derivatives trading.

Underlying macroeconomic factors: The Industry Metal Derivatives market in Singapore is also influenced by broader macroeconomic factors such as global economic conditions and geopolitical events. Economic indicators like interest rates, inflation, and currency fluctuations can impact the prices of metal derivatives, leading to fluctuations in trading activity. Geopolitical tensions and trade disputes can also create volatility in the market, driving investors towards safe-haven assets like precious metals.

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.