Ammonium nitrate and Natural gas

Natural gas is a raw material for ammonium nitrate; their prices have moved together.

Ammonium nitrate (chemical) and Natural gas (energy): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Ammonium nitrate

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

2. Price link: feedstock cost

Cost and price · Strong · Both ways

Gas sets ammonia cost, which flows straight through. European gas moves with the nitrogen fertiliser proxy at 0.13 monthly and 0.78 yearly, as plant contracts pass costs on with a lag.

• 0.13 monthly change correlation
• 0.78 12-month change correlation
• 0.36 fitted elasticity

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