Industry Metal Derivatives - Canada

Canada

The nominal value in the Industry Metal Derivatives market is projected to reach €882.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.78% resulting in a projected total amount of €1,063.00bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to €1.64 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (€2,629.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 569.20k by 2029.

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Analyst Opinion

Amidst the backdrop of Canada's robust economy, the Industry Metal Derivatives market in the country has been witnessing significant developments.

Customer preferences: In Canada, investors and financial institutions are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of metal derivatives lies in their ability to provide exposure to the commodities market without the need to physically own the assets.

Trends in the market: One notable trend in the Industry Metal Derivatives market in Canada is the growing interest in gold and silver derivatives. As safe-haven assets, gold and silver derivatives are sought after during times of economic uncertainty, making them attractive options for investors looking to protect their wealth. This trend is further fueled by the global economic conditions and geopolitical tensions, driving up the demand for these precious metal derivatives in the Canadian market.

Local special circumstances: Canada's status as a major producer of metals like gold, silver, and copper plays a significant role in shaping the metal derivatives market in the country. The presence of a strong mining industry and ample reserves of precious metals not only influences the supply dynamics but also instills confidence in investors regarding the stability of metal derivative investments.

Underlying macroeconomic factors: The performance of the Industry Metal Derivatives market in Canada is also influenced by broader macroeconomic factors such as interest rates, inflation, and currency movements. As these factors fluctuate, they impact the pricing and demand for metal derivatives in the market. Additionally, regulatory changes and government policies related to the commodities market can also shape the landscape for metal derivatives trading in Canada.

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.