Once metals or concentrates are produced, they enter the global market. Trading involves the buying and selling of these commodities between producers, consumers (manufacturers), and intermediaries.
- Spot Market: Transactions for immediate delivery.
- Futures Market: Contracts for future delivery at a predetermined price, used for hedging and speculation.
- Long-Term Contracts: Direct agreements between producers and large consumers for consistent supply over an extended period.
- Key Players: Mining companies, metal traders, industrial end-users (e.g., automotive, construction, electronics sectors), and financial institutions.
- Pricing: Metal prices are influenced by global supply and demand dynamics, geopolitical events, economic indicators, exchange rates, and technological advancements. Major exchanges like the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) play a significant role in price discovery.
