# Electric heating and Steel

Their prices have moved together.

Source page: https://www.materialinsights.org/links/electric-heating-and-steel/

[Electric heating](https://www.materialinsights.org/energy/e_electric_heat/) (energy) and [Steel](https://www.materialinsights.org/commodities/steel/) (commodity): 1 relationship.

## How they are linked

### 1. Price link: furnace output

*Cost and price · Weak · Both ways*

Electric arc furnaces melt scrap into new steel, and furnace bodies are themselves steel. Monthly moves correlate at 0.24 with the steel index and at 0.33 over the last five years, a modest link from shared steel costs and steel industry investment.

- **0.24** monthly change correlation
- **0.21** 12-month change correlation
- **0.53** fitted elasticity

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