Material is any physical substance used in production, costs, and pricing or manufacturing. Raw materials are first extracted or harvested from the earth and made into a form that can be easily transported and stored, then processed to produce "semi-finished materials". These can be input into a new cycle of production and finishing processes to create "finished materials", ready for distribution and [consumption|economics]].
An example of a raw material is cotton, which can be processed into thread or used in the making of paper; further processing can yield garments or books respectively. Steelmaking is another example—raw materials are mined, refined and processed into steel, a semi-finished material. Steel is then used in many other industries to make finished products.