Aðalhráefnið

Aðalhráefnið is a term used in Icelandic industry and economics to denote the principal raw material used to produce a good or service. It is typically the input that accounts for the largest share of material costs, or the core feedstock that largely determines the product’s properties and processing requirements. In production planning, identifying the aðalhráefnið helps companies focus procurement, supplier risk management, and long-term strategy. It is distinct from auxiliary materials and energy inputs, which support production but do not define the product.

In practice, the choice of aðalhráefnið influences product design, processing conditions, quality control, and environmental impact. Price movements of the aðalhráefnið can affect profitability and competitiveness, making risk management and supply diversification important. Industries commonly rely on a few dominant raw materials: for example, steel uses iron ore as its main raw material; cement relies on limestone; many plastics are derived from crude oil; and paper relies on wood fiber. In some cases, the aðalhráefnið can be replaced or substituted, but substitutions may require redesign or different equipment.

Sustainability and circular economy considerations are increasingly applied to the management of the aðalhráefnið, including recycling, material efficiency, and alternative feedstocks. Metrics used to assess exposure include the share of the material cost, material input ratio, and supplier concentration.