Industry Metal Derivatives - Europe

Europe

The nominal value in the Industry Metal Derivatives market is projected to reach €6.35tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.07% resulting in a projected total amount of €8.13tn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to €0.48 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (€2,602.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 14.48m by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Europe continues to show dynamic growth and evolution.

Customer preferences: Traders and investors in Europe are increasingly drawn to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The convenience of trading these financial instruments, without the need for physical ownership of commodities, appeals to a wide range of market participants.

Trends in the market: In countries like Germany and the United Kingdom, there is a noticeable trend towards increased trading volumes of metal derivatives. This can be attributed to the growing interest in alternative investments and the ease of access to global markets through online trading platforms. Additionally, the rise of sustainable investing has led to the emergence of new metal derivative products linked to environmentally friendly practices.

Local special circumstances: Countries like Switzerland, known for their strong banking and financial services sector, have become key players in the European metal derivatives market. The presence of sophisticated investors and a favorable regulatory environment have contributed to the development of innovative derivative products tailored to specific investor needs. Furthermore, in countries with a strong industrial base like France and Italy, metal derivatives play a crucial role in managing price risks for companies in the manufacturing sector.

Underlying macroeconomic factors: The overall economic stability and growth in Europe have provided a conducive environment for the expansion of the metal derivatives market. As the global economy continues to recover from the impact of the pandemic, investors are increasingly turning to metal derivatives as a way to capitalize on the potential price movements in the commodities market. Additionally, the low-interest-rate environment in Europe has driven investors towards alternative assets like metal derivatives in search of higher returns.

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.