Industry Metal Derivatives - Taiwan

Taiwan

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$347.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.56% resulting in a projected total amount of US$414.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.93 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 404.70k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The metal derivatives market in Taiwan has been experiencing significant growth and development in recent years. Customer preferences in the metal derivatives market in Taiwan are influenced by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors are increasingly turning to metal derivatives as a way to manage risk and potentially enhance returns in their investment strategies. Trends in the market show a shift towards increased trading volume and liquidity in metal derivatives, driven by a growing number of institutional investors and market participants entering the space. This trend is further supported by advancements in technology, which have made it easier for investors to access and trade metal derivatives in Taiwan's market.

Local special circumstances in Taiwan, such as the country's strong manufacturing sector and its position as a key player in the global electronics industry, contribute to the demand for metal derivatives. Taiwan's reliance on imported raw materials for its manufacturing activities also plays a role in driving interest in metal derivatives as a way to manage price fluctuations and exposure to commodity markets. Underlying macroeconomic factors, including global trade dynamics, geopolitical events, and currency movements, play a significant role in shaping the metal derivatives market in Taiwan.

Economic indicators and policy decisions both domestically and internationally can impact the prices of metal derivatives, making it essential for investors to stay informed and adapt their strategies accordingly.

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.