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Frequent Questions


This area will be developed and expanded over the coming months as we publish the answers to common questions that are raised. Please give us a ring if you have any suggestions that you would like us to consider.

Metal properties

  • What is the Forming Radius?
    The forming Radius is the minimum radius that a piece of metal can be bend. This is known as MBR (Minimum Bend radius) and may also be quoted as a Formability Number which is the MBR divided by the thickness of the metal.
     
  • What is elongation?
    Elongation is the ratio of the increase in length of an original specified length to the final length (ie How much it streched before breaking). If the material was 100mm long between two points and under outwards tension, when the material breaks. If the measurement between the original two points is now 110mm, then the elongation would be 10%.
     
  • How are the official metal prices calculated? 
    Each day on the London Metal Exchange two 5 minute periods are set aside to trade in each of the main metal elements (such as Copper, Zinc, Tin etc) at the end of the second period when the bell rings, the very last price traded is taken as the official metal price for the day. 
    Whilst these prices remain the official prices that are used by many industries until the following trading days official prices are published, the metals continue to be trading and unofficial prices are quoted throughout the day.
    Many countries have there own standard metal prices that are based on these official metal prices. In the UK the CRMV or Cold Rolled Metal Values have been published for over 20 years, which includes the necessary metal premiums and other finance and carriage costs which are incurred in supplying the actual material.
    These have been published by EIP Metals for over 20 years and are published on this website every metal market date at around 1.45pm. These values can be useful in calculating a base metal price.
     
  • What do backwardation and contango mean?
    The terms “Contango” and “Backwardation” are terms used in futures markets. The term “Contango” originated in mid-19th century England, and is believed to be a corruption of the words "continue" or "contingent". The term “Backwardation” also originated in mid-19th century England and comes from the word “Backward”
    A metal market is said to be in “Contango” when the price of a commodity e.g. Copper, Zinc, Tin etc, for future delivery is higher than the current or spot price. The opposite market condition to “Contango” is known as “Backwardation”.
    A metal market is said to be in “Backwardation” when the price of a commodity e.g. Copper, Zinc, Tin etc, for future delivery is lower than the current or spot price. The opposite market condition to “Backwardation” is known as “Contango”.
     
  • What will happen to the copper price in the next few months?
    Unfortunately this is a question without a real answer, because the price is influenced by many factors which vary in importance from day to day and with the added effect of speculators which further distorts the market, no one knows what the future holds. Whilst it is possible for experts to have good reasons to back their predictions, these are often incorrect due to additional factors which were not included in their forecast.