Industry Metal Derivatives - South America

South America

The nominal value in the Industry Metal Derivatives market is projected to reach US$1,694.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.63% resulting in a projected total amount of US$2,025.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.50 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 3.68m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Metal Derivatives market in South America is witnessing a significant growth trajectory driven by various factors shaping the industry landscape in the region.

Customer preferences: Investors and traders in South America are increasingly turning to metal derivatives as a key component of their investment portfolios. The allure of diversification, risk management, and potential for significant returns are driving customer preferences towards these financial instruments.

Trends in the market: Brazil, as the largest economy in South America, plays a pivotal role in shaping the trends of the Metal Derivatives market in the region. The country's robust industrial sector and growing demand for metals are fueling the adoption of metal derivatives as a hedging tool against price fluctuations. Additionally, the increasing participation of institutional investors in metal derivative trading is adding depth and liquidity to the market.

Local special circumstances: Political and economic stability, or the lack thereof, in certain South American countries can have a profound impact on the Metal Derivatives market. Countries like Chile and Peru, known for their rich mineral resources, are witnessing a surge in metal derivative trading activities. On the other hand, countries facing political uncertainties may experience fluctuations in market demand and trading volumes.

Underlying macroeconomic factors: The overall economic performance of South American countries, currency exchange rates, and global metal prices are critical macroeconomic factors influencing the Metal Derivatives market in the region. As the region continues to attract foreign investments in the mining and metal industries, the demand for metal derivatives as a financial tool for managing risks and exposure is expected to grow further. Additionally, regulatory reforms and initiatives aimed at enhancing market transparency and investor protection are likely to shape the future trajectory of the Metal Derivatives market in South America.

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.