For copper, the LME Official Settlement price will be used throughout the industry pipeline in physical contracts in a number of ways. For example: The Production Stage – extraction of copper from its host rock (ore) Copper is typically extracted by crushing ore rock into powders, which normally contain between and percent copper.
Copper, No. 1 and No. 2: Generally, No. 1 copper consists of copper clippings, punchings and so on that are clean and unalloyed, whereas the lesserpriced No. 2 should have a minimum 94percent copper content. These items are known as "candy" and .