Metal prices are the

prices A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a phys ...

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 metal Precious metals are rare, naturally occurring metallic chemical elements of high Value (economics), economic value. Precious metals, particularly the noble metals, are more corrosion resistant and less reactivity (chemistry), chemically reac ...

s, industrial metals and other metals. Iron ore Precious metals and industrial metals are priced by trading of those metals on

commodities exchange A commodities exchange is an exchange, or market, where various commodities are traded. Most commodity markets around the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, ...

s. 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 Gold is a chemical element; it has chemical symbol Au (from Latin ) and atomic number 79. In its pure form, it is a brightness, bright, slightly orange-yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal ...

silver Silver is a chemical element; it has Symbol (chemistry), symbol Ag () and atomic number 47. A soft, whitish-gray, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. ...

platinum Platinum is a chemical element; it has Symbol (chemistry), symbol Pt and atomic number 78. It is a density, dense, malleable, ductility, ductile, highly unreactive, precious metal, precious, silverish-white transition metal. Its name origina ...

and

palladium Palladium is a chemical element; it has symbol Pd and atomic number 46. It is a rare and lustrous silvery-white metal discovered in 1802 by the English chemist William Hyde Wollaston. He named it after the asteroid Pallas (formally 2 Pallas), ...

and are normally priced by the

ounce The ounce () is any of several different units of mass, weight, or volume and is derived almost unchanged from the , an Ancient Roman unit of measurement. The avoirdupois ounce (exactly ) is avoirdupois pound; this is the United States ...

gram The gram (originally gramme; SI unit symbol g) is a Physical unit, unit of mass in the International System of Units (SI) equal to one thousandth of a kilogram. Originally defined in 1795 as "the absolute Mass versus weight, weight of a volume ...

. Industrial metals include

aluminium alloy An aluminium alloy ( UK/IUPAC) or aluminum alloy ( NA; see spelling differences) is an alloy in which aluminium (Al) is the predominant metal. The typical alloying elements are copper, magnesium, manganese, silicon, tin, nickel and zinc. There ...

aluminium Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...

copper Copper is a chemical element; it has symbol Cu (from Latin ) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkish-orang ...

lead Lead () is a chemical element; it has Chemical symbol, symbol Pb (from Latin ) and atomic number 82. It is a Heavy metal (elements), heavy metal that is density, denser than most common materials. Lead is Mohs scale, soft and Ductility, malleabl ...

nickel Nickel is a chemical element; it has symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive, but large pieces are slo ...

tin Tin is a chemical element; it has symbol Sn () and atomic number 50. A silvery-colored metal, tin is soft enough to be cut with little force, and a bar of tin can be bent by hand with little effort. When bent, a bar of tin makes a sound, the ...

zinc Zinc is a chemical element; it has symbol Zn and atomic number 30. It is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodic tabl ...

, cobolt,

iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the f ...

and Nasaac (North American special aluminium alloy) are exchange traded commodities and are normally priced by the

metric ton The tonne ( or ; symbol: t) is a unit of mass equal to 1,000 kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton in the United States to distinguish it from the non-metric units of the sh ...

. Other metals include

bismuth Bismuth is a chemical element; it has symbol Bi and atomic number 83. It is a post-transition metal and one of the pnictogens, with chemical properties resembling its lighter group 15 siblings arsenic and antimony. Elemental bismuth occurs nat ...

selenium Selenium is a chemical element; it has symbol (chemistry), symbol Se and atomic number 34. It has various physical appearances, including a brick-red powder, a vitreous black solid, and a grey metallic-looking form. It seldom occurs in this elem ...

tellurium Tellurium is a chemical element; it has symbol Te and atomic number 52. It is a brittle, mildly toxic, rare, silver-white metalloid. Tellurium is chemically related to selenium and sulfur, all three of which are chalcogens. It is occasionally fou ...

, and many others including rare earth metals are traded directly between suppliers and users. The

London Metal Exchange The London Metal Exchange (LME) is a futures and forwards exchange in London, United Kingdom with the world's largest market in standardised forward contracts, futures contracts and options on base metals. The exchange also offers contracts on ...

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 dollar The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...

s. This is used to set the price of copper globally. From around 1970 to 2010 iron ore prices used to be fixed by agreement of large mining companies and the steel industry.

Pricing providers

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 A fortnight is a unit of time equal to 14 days (two weeks). The word derives from the Old English term , meaning "" (or "fourteen days", since the Anglo-Saxons counted by nights). Astronomy and tides In astronomy, a ''lunar fortnight'' is hal ...

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. (China became the world's largest consumer of iron ore in 2003, and accounts for over half of global metal consumption.)Metal prices. Economist, February 4th-10th 2017, page 73.

Metal grades

The commodities quoted have a specific grade and quality of the forms in which they are most often traded. An example: 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 Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astr ...

is a high grade form of cobalt with 99.8% purity.

References

{{Reflist Commodity markets Metal industry

Pricing providers

Metal grades

See also

References