Industry Metal Derivatives - Spain

Spain

The nominal value in the Industry Metal Derivatives market is projected to reach US$734.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.39% resulting in a projected total amount of US$868.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$1.56 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 494.80k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Spain is experiencing a notable increase in trading activities and product offerings.

Customer preferences: Traders in the Spanish market are showing a growing interest in metal derivatives as a way to diversify their investment portfolios and hedge against market volatility. They are attracted to the potential for high returns and the opportunity to speculate on price movements in metals such as gold, silver, and copper.

Trends in the market: One prominent trend in the Spanish metal derivatives market is the introduction of innovative financial products that cater to the specific needs of local investors. For instance, structured products linked to the performance of key metal prices are gaining popularity. Additionally, there is a noticeable shift towards online trading platforms, making it easier for retail investors to participate in metal derivatives trading.

Local special circumstances: Spain's strong industrial sector, particularly in automotive and construction, plays a significant role in driving the demand for metal derivatives. As these industries rely heavily on metal commodities, market participants in Spain are keen on using derivatives to manage price risks associated with their operations. Furthermore, the country's strategic location as a gateway to Europe also attracts international investors looking to access the European metal derivatives market.

Underlying macroeconomic factors: The economic stability and growth prospects in Spain are contributing to the positive momentum in the metal derivatives market. With a recovering economy and increasing investor confidence, there is a growing appetite for alternative investment products like metal derivatives. Additionally, the low-interest-rate environment in the Eurozone is pushing investors towards higher-yielding assets, further fueling the demand for metal derivatives as a lucrative investment option.

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.