Commodities are the raw materials that power civilization. They fall into three major categories, each with distinct characteristics, market structures, and trading dynamics.
Commodity Categories Overview
Category
Sub-Categories
Annual Trade Value
Key Exchanges
Energy
Crude oil, products, gas, coal, power
$8+ trillion
NYMEX, ICE, DCE
Metals
Base metals, precious metals, steel
$2+ trillion
LME, COMEX, SHFE
Agriculture
Grains, softs, oilseeds, livestock
$1.5+ trillion
CBOT, ICE, DCE
Energy Commodities
Crude Oil
The world’s most actively traded commodity.
Specification
Description
Global production
~100 million bbl/day
Trade volume
~45 million bbl/day crosses borders
Key benchmarks
Brent, WTI, Dubai
Main exporters
Saudi Arabia, Russia, Iraq, UAE, US
Main importers
China, India, Japan, Korea, EU
Crude Oil Grades
Grade
API Gravity
Sulfur
Category
Benchmark Role
Brent
38°
0.4%
Light Sweet
Global benchmark
WTI
39°
0.3%
Light Sweet
US benchmark
Dubai/Oman
31°
2.0%
Medium Sour
Asia benchmark
Urals
31°
1.4%
Medium Sour
Russian export
Bonny Light
34°
0.1%
Light Sweet
Nigerian export
Arab Light
34°
1.8%
Light Sour
Saudi export
Maya
22°
3.3%
Heavy Sour
Mexican export
API Gravity and Sulfur
API Gravity: Higher = Lighter = More gasoline/diesel yield
Sulfur: Lower = Sweeter = Less refining cost
Light Sweet: Premium grades, high yields, low processing
Heavy Sour: Discount grades, complex refining required
Refined Products
Product
Use
Production Share
Gasoline
Transport
25% of barrel
Diesel/Gasoil
Transport, heating
30% of barrel
Jet Fuel
Aviation
8% of barrel
Fuel Oil
Shipping, power
20% of barrel
Naphtha
Petrochemicals
8% of barrel
LPG
Heating, cooking
5% of barrel
Product Specifications
Product
Specification
Standard
Gasoline
RON (octane)
92-98
Diesel
Cetane index
45-55
Diesel
Sulfur
10-50 ppm (ULSD)
Jet
Flash point
>38°C
Fuel Oil
Sulfur
0.5% (IMO 2020)
Natural Gas & LNG
Aspect
Natural Gas
LNG
State
Gas
Liquid (-162°C)
Transport
Pipeline
Ship
Trade
Regional
Global
Pricing
Hub-based (HH, TTF)
Oil-linked or spot
Volume
4,000+ bcm/year
400 MTPA
Major Gas Markets
Hub
Location
Benchmark
Henry Hub
Louisiana, US
US natural gas
TTF
Netherlands
European gas
JKM
Japan-Korea
Asian LNG spot
NBP
UK
UK gas
Coal
Type
Use
Energy Content
Trade Volume
Thermal
Power generation
4,500-6,500 kcal/kg
1,000 MTPA
Metallurgical
Steelmaking
Higher quality
350 MTPA
Coal Specifications
Parameter
Thermal Coal
Met Coal
CV (kcal/kg)
5,500-6,000
6,500+
Ash
<15%
<10%
Sulfur
<1%
<1%
Moisture
<12%
<8%
Benchmark
Newcastle 6000
PLV HCC
Metals
Base Metals
Traded primarily on LME (London Metal Exchange).
Metal
Global Production
Main Use
Top Producers
Copper
25 MMT
Electrical, construction
Chile, Peru, DRC
Aluminum
70 MMT
Transport, packaging
China, Russia, India
Zinc
14 MMT
Galvanizing
China, Peru, Australia
Nickel
3 MMT
Stainless steel, batteries
Indonesia, Philippines
Lead
12 MMT
Batteries
China, Australia
Tin
350,000 MT
Electronics, solder
China, Indonesia
LME Contract Specifications
Metal
Contract Size
Min Purity
Shapes
Copper
25 MT
Grade A (99.99%)
Cathodes
Aluminum
25 MT
Primary (99.7%)
Ingots
Zinc
25 MT
SHG (99.995%)
Ingots
Nickel
6 MT
Primary (99.8%)
Cathodes
Lead
25 MT
Standard (99.97%)
Ingots
Tin
5 MT
Grade A (99.85%)
Ingots
Copper Concentrate
Raw material for copper smelters.
Specification
Typical Range
Copper content
25-35%
Gold credits
0-15 g/MT
Silver credits
50-500 g/MT
Sulfur
25-35%
Moisture
<10%
Pricing: TC/RC (Treatment Charge/Refining Charge) deducted from LME price