# Cement: Correlation Prices it moves with, and why Source page: https://www.materialinsights.org/commodities/cement/correlation/ Cement is made by burning limestone and clay into clinker in kilns, then grinding it with gypsum. Fuel, power and carbon costs are large, and heavy weight keeps markets regional. Housing and infrastructure set demand, in India as in the United States. Price index **US producer price index: cement manufacturing** index, BLS base period · monthly, Jan 2006 to Sep 2026 #### What its price moves with Selected link ##### Cement and Crushed stone Monthly changes 0.48 moderate correlation 12-month changes 0.60 moderate correlation Last 5 years 0.67 monthly changes Lead or lag none No clear lead or lag Price function, Jan 2006 to Sep 2026 Cement ≈ 2.82 × (Crushed stone)^0.77 R² 0.91 On this fit, a 10% higher crushed stone price goes with a 7.6% higher cement price over the long run. Units: index, BLS base period and index, BLS base period. Chart: Cement and Crushed stone prices rebased to 100 at Jan 2006, log scale Both prices rebased to 100 at Jan 2006, on a log scale so equal percentage moves look the same size. Chart: Cement price against Crushed stone price, monthly, log scales, with fitted line Each dot is one month; paler dots are older (2006), darker dots recent (2026); the ringed dot is the latest month. The dashed line is the fitted price function. Both axes are logarithmic. Commodity [Stn Crushed stone](https://www.materialinsights.org/commodities/crushed_stone/)Shared demand 0.48 Crushed stone and cement are mixed into concrete for the same building and road projects, and limestone is cement's main raw material. The indexes move together, monthly moves at 0.48, yearly moves at 0.60 and 0.67 in the last five years. moderate co-movement month to month · 249 months Show charts Commodity [Agg Sand & gravel](https://www.materialinsights.org/commodities/sand_gravel/)Shared demand 0.45 Concrete needs cement, sand and gravel together, so construction demand moves all three. The indexes share monthly moves at 0.45 and yearly moves at 0.67, with 0.60 in the last five years, as US aggregate and cement producers raised prices together after the pandemic. moderate co-movement month to month · 249 months Show charts Commodity [Gyp Gypsum](https://www.materialinsights.org/commodities/gypsum/)Input 0.19 A small amount of gypsum is ground into clinker to control how fast cement sets. The link in the data is weak, monthly moves at 0.19 and yearly moves at 0.29, partly because the gypsum proxy tracks wallboard products rather than raw gypsum. little or none co-movement month to month · 249 months Show charts Energy [Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)Kiln fuel −0.10 Coal and petroleum coke fire most cement kilns, especially in India and China. The US cement index shows almost no link with Australian coal, monthly moves at -0.10 and yearly moves at -0.07, because US kilns buy fuel locally and cement prices change mainly once a year. little or none co-movement month to month · 249 months Show charts Chemical [Con Construction chemicals](https://www.materialinsights.org/chemicals/construction_chemicals/)Used with 0.18 Concrete admixtures that improve flow, setting and strength are sold alongside cement. The indexes show a modest link, monthly moves at 0.18 and yearly moves at 0.21, reflecting shared construction demand rather than a direct cost link. little or none co-movement month to month · 249 months Show charts Energy [HI Energy-intensive industry](https://www.materialinsights.org/energy/e_heavy_industry/)Energy cost 0.07 Grinding raw meal, clinker and cement uses much electricity, making power a major cost after kiln fuel. The index link is weak, monthly moves at 0.07 and yearly moves at 0.29, as many plants generate their own power or recover waste heat. little or none co-movement month to month · 249 months Show charts How to read these numbers **Correlation of monthly changes** (the number in the coloured pill) compares how much each price moved, month by month, since 2006 or the first month both series exist. It runs from −1 to +1: near +1 the two usually rise and fall in the same months, near 0 there is no link, and a negative number means they tend to move in opposite directions. Above 0.7 is strong, 0.4 to 0.7 moderate, 0.2 to 0.4 weak. **12-month changes** compare year-on-year moves, which shows whether two prices share the same cycles even when the month-to-month noise differs. **Price function** is a straight-line fit of the two prices on logarithmic scales: price ≈ k × (partner price)^β. β is how much this price moves, in per cent, for a 1% move in the partner over the whole period, and R² is the share of the variation the fit explains. Two prices that both drift up with inflation can fit well without any real link, so read it together with the monthly correlation. **Lead or lag** checks whether the monthly correlation is clearly higher when one price is shifted by 1 to 6 months. Correlation is not cause. The reasons on each card explain the economic link; the numbers show how strongly it has shown up in prices. Proxy series are US producer price indexes or related prices and can blur the real link. Data: World Bank Commodity Price Data (Pink Sheet), October 2026; US Bureau of Labor Statistics producer price indexes, IMF primary commodity prices and US EIA prices via FRED, Federal Reserve Bank of St. Louis, retrieved November 2026. Calculations by this site. ## Other sections - [Summary](https://www.materialinsights.org/commodities/cement/index.md) - [Overview](https://www.materialinsights.org/commodities/cement/overview/index.md) - [Extraction](https://www.materialinsights.org/commodities/cement/extraction/index.md) - [Production](https://www.materialinsights.org/commodities/cement/production/index.md) - [Stocks](https://www.materialinsights.org/commodities/cement/stocks/index.md) - [Cycles](https://www.materialinsights.org/commodities/cement/cycles/index.md) - [Trading](https://www.materialinsights.org/commodities/cement/trading/index.md) - [Movement](https://www.materialinsights.org/commodities/cement/movement/index.md) - [Criticality](https://www.materialinsights.org/commodities/cement/criticality/index.md) - [Characteristics](https://www.materialinsights.org/commodities/cement/characteristics/index.md) - [Emissions](https://www.materialinsights.org/commodities/cement/emissions/index.md) - [Relationships](https://www.materialinsights.org/commodities/cement/links/index.md)