Industry Metal Derivatives - Germany

Germany

The nominal value in the Industry Metal Derivatives market market in Germany is forecasted to reach US$33.31bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of -0.45%, resulting in a projected total amount of US$32.71bn by 2028.
The average price per contract in the Industry Metal Derivatives market market in Germany stands at US$14.69 in 2024.
When compared globally, the highest nominal value is achieved in South Africa (US$9,397.00bn in 2024).
In the Industry Metal Derivatives market market in Germany, the number of contracts is expected to reach 2.00k by 2028.
Germany's demand for Industry Metal Derivatives in the Commodities market is driven by its robust manufacturing sector and focus on industrial innovation.

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Analyst Opinion

The Industry Metal Derivatives market in Germany is experiencing a significant shift in customer preferences towards more diversified investment options in the financial sector.

Customer preferences: Investors in Germany are increasingly turning to metal derivatives as a way to hedge against market volatility and diversify their portfolios. The appeal of these derivatives lies in their ability to provide exposure to the price movements of various metals without the need to physically own the commodities.

Trends in the market: One notable trend in the German metal derivatives market is the growing popularity of gold and silver contracts. As safe-haven assets, gold and silver have seen increased demand from investors seeking to protect their wealth during uncertain economic times. This trend is further fueled by geopolitical tensions and inflation concerns, driving up the trading volumes of these contracts.

Local special circumstances: Germany's strong manufacturing sector and its position as a key player in the European economy contribute to the robust demand for metal derivatives in the country. The presence of major financial institutions and a well-developed regulatory framework also make Germany an attractive market for investors looking to trade metal derivatives.

Underlying macroeconomic factors: The performance of the German economy, including factors such as GDP growth, inflation rates, and interest rates, plays a crucial role in shaping the metal derivatives market. Economic indicators influence investor sentiment and risk appetite, impacting the demand for these financial instruments. Additionally, global economic conditions and trade dynamics can also influence metal prices and, in turn, the trading activity in metal derivatives in Germany.

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.