Industry Metal Derivatives - Southeast Asia

Southeast Asia

The nominal value in the Industry Metal Derivatives market is projected to reach US$957.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.42% resulting in a projected total amount of US$1,132.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.03 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 40.37m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Southeast Asia is experiencing significant growth and development. Customer preferences in the Southeast Asian region are shifting towards more diverse investment options, with a growing interest in alternative financial instruments like metal derivatives.

Investors are increasingly looking for ways to diversify their portfolios and hedge against market volatility, driving the demand for metal derivatives in the region. Trends in the market show a rising adoption of metal derivatives in countries like Singapore, Malaysia, and Indonesia. These countries are witnessing an increase in trading activities and investments in metal derivatives, fueled by the growing awareness of risk management strategies among market participants.

Additionally, the development of robust financial infrastructure and regulatory frameworks is also contributing to the expansion of the metal derivatives market in Southeast Asia. Local special circumstances, such as the rapid industrialization and urbanization in countries like Vietnam and Thailand, are creating a strong demand for metals and metal derivatives. As these economies continue to grow, the need for hedging tools to manage price risks associated with metal commodities becomes more pronounced, driving the adoption of metal derivatives in the region.

Underlying macroeconomic factors, including favorable government policies, stable economic growth, and increasing foreign direct investments, are providing a conducive environment for the growth of the metal derivatives market in Southeast Asia. The region's strategic location as a trading hub and its growing importance in the global supply chain are also attracting investors to explore opportunities in metal derivatives as part of their investment strategies.

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.