# Ammonium nitrate and Natural gas

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

Source page: https://www.materialinsights.org/links/ammonium-nitrate-and-natural-gas/

[Ammonium nitrate](https://www.materialinsights.org/chemicals/ammonium_nitrate/) (chemical) and [Natural gas](https://www.materialinsights.org/energy/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.