Industry Metal Derivatives - South Africa

South Africa

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$1.40tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.62% resulting in a projected total amount of US$1.51tn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.60 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 2.42m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Metal Derivatives market in South Africa is experiencing a notable surge in interest and activity, reflecting the growing importance of these financial instruments in the country's investment landscape.

Customer preferences: Investors in South Africa are increasingly turning to Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for high returns and the opportunity to participate in the global commodities market without directly owning physical assets.

Trends in the market: One prominent trend in the South African Metal Derivatives market is the rising demand for gold and platinum derivatives. These precious metals have a strong historical significance in the country, making them popular choices among local investors. The increasing interest in environmentally friendly investments is also driving the demand for metal derivatives linked to sustainable resources like silver and copper.

Local special circumstances: South Africa's mining industry plays a crucial role in shaping the Metal Derivatives market in the country. As one of the world's largest producers of gold and platinum, the local market dynamics heavily influence derivative prices and trading volumes. Moreover, the country's regulatory environment and currency fluctuations can impact the performance of metal derivatives in South Africa.

Underlying macroeconomic factors: The performance of the South African economy, global commodity prices, and geopolitical events all play a significant role in shaping the Metal Derivatives market in the country. Economic indicators such as inflation rates, interest rates, and GDP growth can influence investor sentiment and drive demand for metal derivatives as a way to manage risk and seek returns in a volatile market environment.

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.