Acetic acid and Natural gas

Natural gas is a raw material for acetic acid; their prices have moved together.

Acetic acid (chemical) and Natural gas (energy): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Acetic acid

Acetic acid is made from natural gas: it is one of the raw materials its production routes start from.

2. Price link: syngas feed

Cost and price · Strong · Both ways

Outside China, gas supplies the syngas for both carbon monoxide and methanol. European gas moves with the basic organics proxy at 0.21 monthly and 0.80 yearly. The monthly tie is weak because acetic acid margins follow Chinese supply.

• 0.21 monthly change correlation
• 0.80 12-month change correlation
• 0.15 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.