Plain-language definitions of 133 terms used in raw material trade: Incoterms, payment, shipping, customs, quality documents, plastics, metals, chemicals, agriculture and energy.
The period during which an offer can be accepted unchanged – kept short for volatile raw materials, from a few hours to a few days. Contracts with long lead times or periodic deliveries use price-revision (escalation) clauses: if a raw-material index, energy cost, freight or exchange rate moves beyond a set threshold, the price is updated by formula. Such clauses stop fixed-price contracts from collapsing into cancellation or default when markets move sharply.
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