Energy-intensive industry and Steel

Energy-intensive industry needs steel; their prices have moved together.

Energy-intensive industry (energy) and Steel (commodity): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Steel → Energy-intensive industry

Building or running Energy-intensive industry needs steel.

2. Price link: electricity cost

Cost and price · Weak · Both ways

Electric arc furnaces, which make most US steel from scrap, are large power users, so electricity is a key cost. The industrial power index correlates at only 0.09 monthly and 0.29 yearly, because power contracts and steel prices reset on different schedules.

• 0.09 monthly change correlation
• 0.29 12-month change correlation
• 1.09 fitted elasticity

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