Industry Metal Derivatives - Thailand

Thailand

The nominal value in the Industry Metal Derivatives market is projected to reach US$269.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.74% resulting in a projected total amount of US$308.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.78 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 371.30k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Thailand is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Investors in Thailand are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and ability to spread risk across different assets.

Trends in the market: One notable trend in the Thai metal derivatives market is the growing popularity of gold and silver contracts. As safe-haven assets, gold and silver derivatives are in high demand during times of economic uncertainty, providing investors with a sense of security amidst market fluctuations. Moreover, the rise of industrialization in Thailand has also fueled the demand for base metal derivatives like copper and aluminum, reflecting the country's expanding manufacturing sector.

Local special circumstances: Thailand's strategic location in Southeast Asia positions it as a key player in the global supply chain, making it a hub for metal derivatives trading in the region. The country's stable political environment and supportive regulatory framework further attract foreign investors looking to participate in the metal derivatives market. Additionally, the presence of established commodity exchanges in Thailand facilitates easy access to a wide range of metal derivative products for both retail and institutional investors.

Underlying macroeconomic factors: The economic growth and industrial development in Thailand play a crucial role in driving the demand for metal derivatives. As the country continues to modernize its infrastructure and expand its manufacturing capabilities, the need for metal-based products and derivatives is expected to rise correspondingly. Furthermore, Thailand's strong export-oriented economy exposes it to global market trends, influencing the trading volumes and price movements of metal derivatives 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.