Industry Metal Derivatives - Zambia

Zambia

The nominal value in the Industry Metal Derivatives market is projected to reach US$12.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.66% resulting in a projected total amount of US$14.60bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.05 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 286.80k by 2029.

Market

Region

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Currency

Analyst Opinion

The Industry Metal Derivatives market in Zambia has been experiencing a notable shift in recent years.

Customer preferences: Customers in Zambia have shown an increasing interest in diversifying their investment portfolios, leading to a growing demand for metal derivatives as a financial instrument. This trend is in line with the global market, where investors are looking for alternative assets to hedge against market volatility.

Trends in the market: One prominent trend in the Zambian metal derivatives market is the rise in speculative trading activities. Investors are capitalizing on the price movements of metal derivatives to generate short-term profits. This trend mirrors the behavior seen in other emerging markets where derivative trading is gaining popularity.

Local special circumstances: Zambia's economy heavily relies on the mining industry, making it particularly sensitive to fluctuations in metal prices. As a result, market participants in Zambia are increasingly turning to metal derivatives to manage their exposure to price risk. This unique local circumstance is driving the growth of the metal derivatives market in the country.

Underlying macroeconomic factors: The stability of Zambia's currency and interest rates, as well as the overall economic growth trajectory, play a significant role in shaping the metal derivatives market. Favorable macroeconomic conditions, such as low inflation and steady GDP growth, have provided a conducive environment for the development of the market. Additionally, government policies and regulations around derivative trading have also influenced the market dynamics in Zambia.

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.