L · 2
Landed cost
The total cost of a raw material until it reaches the manufacturer’s warehouse: product price + freight + insurance + customs duty and additional taxes + port, terminal and demurrage charges + customs broker fees + inland haulage + financing (letter of credit, interest) + exchange-rate effects. Offers with different Incoterms, origins and payment terms can only be compared correctly once converted to a landed-cost basis. A distant supplier with a low FOB price may end up more expensive than a nearby one after freight and anti-dumping duty.
London Metal Exchange (LME) and commodity exchanges
The exchange that sets global reference prices for non-ferrous metals such as copper, aluminium, zinc, nickel, lead, tin and cobalt; its official prices and monthly averages are used as indices in physical contracts. A physical buyer pays the LME price plus a premium that depends on origin, brand and delivery location (e.g. the Rotterdam aluminium premium). Other key exchanges: CME/COMEX (copper, gold), ICE (Brent, cocoa, coffee, sugar, cotton), CBOT (soybeans, corn, wheat), SHFE (Shanghai metals), DCE and ZCE (Chinese plastics, iron ore and agricultural futures) and Bursa Malaysia (palm oil).