Industry Metal Derivatives - Hong Kong

Hong Kong

The nominal value in the Industry Metal Derivatives market is projected to reach €10.51bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.58% resulting in a projected total amount of €12.53bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to €0.02 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 546.40k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Hong Kong reflects a dynamic environment driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Metal Derivatives market in Hong Kong are notably influenced by the global demand for metals, especially in the context of economic growth and industrial production.

Investors and traders in Hong Kong show a preference for metal derivatives as a way to diversify their portfolios and hedge against market risks. The demand for these derivatives is also shaped by factors such as geopolitical tensions, currency fluctuations, and overall market volatility, all of which drive investors towards safe-haven assets like metal derivatives. Trends in the Metal Derivatives market in Hong Kong are characterized by an increasing interest in precious metals such as gold and silver.

These metals are viewed as traditional stores of value and are often sought after during times of economic uncertainty. The market also witnesses a growing trend towards the trading of base metals derivatives, driven by the infrastructure development and manufacturing activities in the region. Additionally, the adoption of advanced trading technologies and platforms is shaping the market landscape, making trading more accessible and efficient for market participants in Hong Kong.

Local special circumstances in Hong Kong, such as its position as a global financial hub and its proximity to major metal-consuming markets in Asia, play a significant role in influencing the Metal Derivatives market. The presence of a well-established financial infrastructure, regulatory framework, and a pool of experienced market participants contribute to the growth and development of the market in Hong Kong. Moreover, the city's strategic location and strong connectivity with mainland China and other Asian markets create opportunities for trading and investment in metal derivatives.

Underlying macroeconomic factors, including interest rates, inflation, and overall economic performance, have a substantial impact on the Metal Derivatives market in Hong Kong. Changes in monetary policies by central banks, trade dynamics, and global economic trends can influence the prices of metal derivatives and trading volumes in the market. As Hong Kong continues to navigate through various economic challenges and opportunities, the Metal Derivatives market remains responsive to macroeconomic developments both locally and globally.

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.