Industry Metal Derivatives - Zimbabwe

Zimbabwe

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$13.07bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.72% resulting in a projected total amount of US$15.69bn 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 China (US$2.83tn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 299.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Zimbabwe is showing interesting developments that reflect both global trends and local dynamics. Customer preferences in the metal derivatives market in Zimbabwe are influenced by a growing interest in alternative investment options.

Investors are increasingly looking for diverse portfolios to hedge against market volatility and inflation. This trend is not unique to Zimbabwe but is part of a broader shift in the global financial markets towards derivatives as a tool for risk management and speculation. Trends in the market indicate a gradual but steady growth in the demand for metal derivatives in Zimbabwe.

As the economy stabilizes and financial markets mature, more investors are turning to metal derivatives as a way to diversify their investments and seek higher returns. The increasing participation of institutional investors and the development of sophisticated trading platforms are also contributing to the growth of the market. Local special circumstances, such as the country's rich mineral resources and mining industry, play a significant role in shaping the metal derivatives market in Zimbabwe.

The abundance of metals like gold, platinum, and nickel provides a strong foundation for the development of derivative products linked to these commodities. Additionally, the government's efforts to promote the financial markets and attract foreign investment are creating a conducive environment for the expansion of the metal derivatives market. Underlying macroeconomic factors, including inflation rates, currency stability, and regulatory environment, are crucial in driving the growth of the metal derivatives market in Zimbabwe.

As the country addresses economic challenges and implements reforms to improve the business climate, investors gain more confidence in the financial markets, leading to increased participation in derivative trading. The stability of the local currency and the overall economic outlook also influence investor sentiment and the demand for metal derivatives as a financial instrument. Overall, the metal derivatives market in Zimbabwe is evolving in response to changing customer preferences, global trends in alternative investments, and local special circumstances that create opportunities for growth and development.

As the market continues to expand and attract more participants, it is essential to monitor how regulatory frameworks and macroeconomic factors will shape its future trajectory.

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.