// Workers AI · dad joke modeWhat did metal prices say to each other? You're priceless.
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Metal prices are the prices of metal as a commodity that are traded in bulk at a predefined purity or grade. Metal can be split into three major categories, precious metals, industrial metals and other metals. Iron ore
Precious metals and industrial metals are priced by trading of those metals on commodities exchanges.[1] Other metals are traded on demand and the buyers and sellers themselves set the price sometimes using third party companies that set a reference or indicative price.
Precious metals include gold, silver, platinum and palladium and are normally priced by the ounce or gram. Industrial metals include aluminium alloy, aluminium, copper, lead, nickel, tin, zinc, cobolt, iron ore and Nasaac (North American special aluminium alloy) are exchange traded commodities and are normally priced by the metric ton. Other metals include bismuth, selenium, tellurium, and many others including rare earth metals are traded directly between suppliers and users.
The London Metal Exchange is an example of a metals exchange where metal is traded providing pricing for defined purity and contract size. The LME Copper contract for example is for delivery of 25 tonnes of Grade A copper cathode at a specified location and priced in United States dollars. This is used to set the price of copper globally.[citation needed] Periods of high copper prices such as 2011–2014 and 2021 have led to renewed interest on aluminium as substitute.[2]
From around 1970 to 2010 iron ore prices used to be fixed by agreement of large mining companies and the steel industry.[3][4]
Pricing providers
[edit]There are companies which provide a pricing service set the price by talking to producers, traders and consumers. These prices are more an indication than an actual exchange price.
Unlike the prices on an exchange, pricing providers tend to give a weekly or bi-weekly price. For each commodity they quote a range (low and high price) which reflect the buying and selling about 9-fold due to China's transition from light to heavy industry and its focus on manufacturing.[5] (China became the world's largest consumer of iron ore in 2003,[6] and accounts for over half of global metal consumption.)[7]
Metal grades
[edit]The commodities quoted have a specific grade and quality of the forms in which they are most often traded.
An example:
| Commodity | Cobalt |
|---|---|
| Traded forms | Cobalt min 99.3% Russian Cobalt min 99.8% - aerospace application |
Cobalt is an important export product of Russia and therefore the Russian quality is often traded. Another form of cobalt crucial to the aerospace industry is a high grade form of cobalt with 99.8% purity.
See also
[edit]References
[edit]- ↑ "Markets - Precious and Industrial Metals Other metals". Bloomberg L.P. Retrieved July 23, 2024.
- ↑ Análisis de Minerales Críticos y/o Estratégicos [Analysis of Critical and/or Strategic Minerals] (Report) (in Spanish). Chilean Copper Commission. 2024. pp. 58–60. Retrieved 2026-03-25.
- ↑ Revista Minería Chilena (2011-08-05). "El nuevo impulso del hierro en Chile". Minería Chilena (in Spanish). Retrieved 2025-05-10.
- ↑ "Global Market Price Update for Stainless Steel Pipes (2026)". Thaida Stainless Steel Manufacturing (Thailand) Co., Ltd. 2026-04-01. Archived from the original on 2026-04-20.
- ↑ Wilson Jeffrey. How China drives the Australian iron ore boom (and bust) . 27 August 2012.
- ↑ Leaver Richard. Same bed, different nightmares: Stern Hu, the iron ore-war, and Australia-China relations Archived 2015-03-21 at the Wayback Machine. 18th Biennial Conference of the Asian Studies Association of Australia in Adelaide, 5-8 July 2010.
- ↑ Metal prices. Economist, February 4th-10th 2017, page 73.