# Caustic soda and Fatty acids

Their prices have moved together.

Source page: https://www.materialinsights.org/links/caustic-soda-and-fatty-acids/

[Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/) (chemical) and [Fatty acids](https://www.materialinsights.org/chemicals/fatty_acids/) (chemical): 1 relationship.

## How they are linked

### 1. Price link: shared demand driver

*Cost and price · Strong · Both ways*

Caustic soda turns fatty acids into soap, so both are used in the same plants and follow the same US chemical cycle. The indices share this common driver more than a direct cost link: monthly moves correlate at 0.34 and yearly moves at 0.60.

- **0.34** monthly change correlation
- **0.60** 12-month change correlation
- **1.19** fitted elasticity

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