In fact, point price is not a term in LME transaction, but a commonly used term or method in physical transaction. As more and more manufacturers, consumers and traders use LME, the price uncertainty is also increasing. In order to lock in a certain price level, LME price base is used for physical transaction in time, thus generating point price. Because it is LME that provides the price basis for the physical point price. If there is no LME market, there is no point price in physical trade, but the buyer and seller directly determine the price when signing the contract.
Spot price is a pricing method of futures delivery, that is, for a certain type of forward delivery goods, the price of the goods is not directly determined, but only the discount is determined. Then, in the agreed "pricing period", the futures price of a certain day in the major international futures exchanges is taken as the base price of pricing, and the agreed premium is taken as the final settlement price.
"Point price" method, that is, the basis is set first, and the buyer will decide the futures price in the future. This "futures price+basis" pricing method provides more choices for spot enterprises and reduces the price risk of traditional trade pricing methods to some extent.