Industry Metal Derivatives - United Kingdom

United Kingdom

The nominal value in the Industry Metal Derivatives market is projected to reach US$39.01bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.26% resulting in a projected total amount of US$43.63bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$5.51 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 8.35k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in United Kingdom is experiencing a significant growth trajectory. Customer preferences in the United Kingdom are shifting towards metal derivatives as a way to diversify investment portfolios and hedge against market volatility.

Investors are increasingly looking for alternative investment options beyond traditional stocks and bonds, and metal derivatives provide a lucrative opportunity in this regard. Trends in the market show a growing demand for metal derivatives in the United Kingdom, driven by factors such as geopolitical uncertainties, fluctuating currency values, and global trade tensions. As a result, investors are turning to metal derivatives as a safe haven asset to protect their wealth and mitigate risks associated with traditional financial instruments.

Local special circumstances in the United Kingdom, such as the country's strong financial services industry, regulatory framework, and access to global markets, have contributed to the growth of the metal derivatives market. The presence of established financial institutions and a well-developed infrastructure for trading and investment activities make the UK an attractive destination for investors looking to engage in metal derivatives trading. Underlying macroeconomic factors, including interest rates, inflation, and economic growth, play a crucial role in shaping the metal derivatives market in the United Kingdom.

As economic conditions evolve, investors adjust their strategies and turn to metal derivatives as a way to capitalize on market opportunities and protect their investments from potential downturns.

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.