# Ammonia and Energy-intensive industry

Energy-intensive industry needs ammonia; their prices have moved together.

Source page: https://www.materialinsights.org/links/ammonia-and-energy-intensive-industry/

[Ammonia](https://www.materialinsights.org/chemicals/ammonia/) (chemical) and [Energy-intensive industry](https://www.materialinsights.org/energy/e_heavy_industry/) (energy): 2 relationships.

## How they are linked

### 1. Material need

*Physical flow · Direct · Ammonia → Energy-intensive industry*

Building or running Energy-intensive industry needs ammonia.

### 2. Price link: gas-intensive product

*Cost and price · Moderate · Both ways*

Ammonia uses natural gas as both fuel and feedstock, so it moves with energy costs. Yearly moves correlate at 0.35 with industrial power but monthly moves over the last five years at -0.46, as fertiliser markets swung on their own supply shocks.

- **-0.18** monthly change correlation
- **0.35** 12-month change correlation
- **0.37** fitted elasticity

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