Industry Metal Derivatives - Western Asia

Western Asia

The nominal value in the Industry Metal Derivatives market is projected to reach US$326.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.61% resulting in a projected total amount of US$389.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.11 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 3.33m by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Western Asia is experiencing a significant shift in response to changing customer preferences, market trends, and local special circumstances.

Customer preferences: Customers in Western Asia are increasingly looking for diversified investment opportunities to hedge against market volatility and inflation. As a result, there is a growing demand for metal derivatives as a financial instrument to manage risk and optimize investment portfolios.

Trends in the market: One notable trend in the metal derivatives market in Western Asia is the rising popularity of gold and silver contracts. Investors view these precious metals as safe-haven assets during times of economic uncertainty, driving the demand for related derivatives. Additionally, there is a growing interest in base metal derivatives such as copper and aluminum, reflecting the region's focus on infrastructure development and industrial growth.

Local special circumstances: Western Asia's geopolitical landscape and economic diversification efforts play a significant role in shaping the metal derivatives market. The region's strategic location as a hub for trade and commerce influences the demand for metal derivatives as investors seek exposure to global commodity markets. Moreover, government initiatives to promote capital market development and financial innovation are creating a conducive environment for the growth of the metal derivatives market in Western Asia.

Underlying macroeconomic factors: Macroeconomic factors such as interest rates, currency fluctuations, and global trade dynamics have a profound impact on the metal derivatives market in Western Asia. Central bank policies, inflation rates, and geopolitical tensions can influence investor sentiment and drive demand for metal derivatives as a risk management tool. Additionally, the region's economic growth prospects and industrial activities contribute to the overall performance of the metal derivatives market in Western Asia.

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.