Sourcing:
Extraction & Refining: The process
begins with mining operations to
extract ore containing the target
metal, followed by refining
processes. For example, copper is
extracted from copper ores using
smelting techniques, while aluminum
is derived from bauxite ore through
a refining process known as the
Bayer process.
Raw Material Suppliers
Metals are
sourced from large mining companies
that operate mines or have exclusive
rights to extract specific metals.
These suppliers provide raw metal or
semi-refined materials to smelters
and refineries for further
processing.
Bulk Shipping:
Like minerals, metals are often
shipped in bulk, typically using
bulk carriers or container ships for
smaller quantities. They are
transported from smelters and
refineries to manufacturing hubs and
distributors worldwide.
Rail and Trucking
In some
regions, especially for land-based
transportation, railcars and trucks
are used to ship metals from
refineries to regional warehouses or
ports. This ensures efficient
transportation to meet the demands
of industries in different
locations.
Refinery Storage:
Metals
are stored in large warehouses or
silos at the refining stage. These
storage facilities often house
various types of metals that are
ready to be shipped to industrial
clients.
Warehousing for
Trading:
Metals traded on
commodities exchanges, such as
London Metal Exchange (LME), are
stored in designated warehouses.
These warehouses act as secure
storage for metals that are ready to
be bought and sold by manufacturers
or traders.
Product
Inventory:
Once refined,
metals may be stored as ingots,
sheets, or coils at manufacturing
plants, ready to be fabricated into
products or sold directly to
customers.
Global Distribution:
Refined metals are shipped to
manufacturers in various industries
such as automotive, electronics,
construction, and aerospace. Metals
like aluminium and copper are
crucial for products ranging from
building materials to electric
vehicle components.
End Products:
Metals are
often used to create consumer goods,
which are then delivered to end
consumers through retail outlets or
distribution centers. For example,
aluminium may be used in beverage
cans or automotive parts, and copper
is essential for electrical wiring
and electronics.