A Raw Material is anything that can be extracted or harvested from Oberin's environment. There are quite a few raw materials. Some must be harvested using Skills (which then makes them harvestables, see Dwarven Hand Axe), while others can be picked (foraged) from the land. These can then be processed into goods that can be sold for gold or used as trading currency.

You can also sell raw materials to other players; they might buy logs for beyond 100 gp each.

Most raw materials can be bought in shops, but things like Ferrite, Volcanic Ash, and Dragon Teeth cannot. Shops will also buy certain raw materials that they don't sell, like Volcanic Ash. A Dragon Tooth quest is available in Lerilin.