# Ammonia and Nitrogen (ammonia)

Nitrogen (ammonia) is a raw material for ammonia; their prices have moved together.

Source page: https://www.materialinsights.org/links/ammonia-and-nitrogen-ammonia/

[Ammonia](https://www.materialinsights.org/chemicals/ammonia/) (chemical) and [Nitrogen (ammonia)](https://www.materialinsights.org/commodities/nitrogen/) (commodity): 2 relationships.

## How they are linked

### 1. Feedstock

*Physical flow · Direct · Nitrogen (ammonia) → Ammonia*

Ammonia is made from nitrogen (ammonia): it is one of the raw materials its production routes start from.

### 2. Price link: intermediate

*Cost and price · Strong · Both ways*

Urea is made by reacting ammonia with carbon dioxide, so the two prices are tied by cost. The proxy is a US nitrogen fertiliser index that covers ammonia; it correlates at 0.27 monthly and 0.82 yearly, with urea tending to lead by about a month.

- **0.27** monthly change correlation
- **0.82** 12-month change correlation
- **1.15** fitted elasticity

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