Industry Metal Derivatives - South Korea

South Korea

The nominal value in the Industry Metal Derivatives market is projected to reach US$654.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.33% resulting in a projected total amount of US$808.80bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$1.28 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 539.40k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in South Korea has been experiencing significant growth and development in recent years. Customer preferences in South Korea are shifting towards alternative investment options like metal derivatives due to their potential for high returns and portfolio diversification.

Trends in the market show an increasing demand for metal derivatives as investors seek to hedge against market volatility and inflation risks, especially in uncertain economic times. Local special circumstances, such as the country's strong manufacturing sector and technological advancements, have created a conducive environment for the growth of the metal derivatives market in South Korea. Underlying macroeconomic factors, including government policies supporting the financial market and increasing awareness about the benefits of metal derivatives, are further driving the expansion of the industry 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.