Benchmark Price
A benchmark price is the standard market value used as a reference point for trading a specific commodity.
Quick Reference:
Benchmark Price. Standard Market Value. Reference Point.
Expanded Definition:
Benchmark prices are essential for pricing transparency in commodity markets. They act as a reference for contracts and negotiations. For example, Brent Crude sets the tone for global oil prices, while Newcastle Coal serves as the benchmark for the Australian thermal coal exports. These prices are typically calculated by agencies or exchanges and are used to ensure fairness and consistency across markets.