Material Insights · Understanding the Material World

Gas pipelines and city gas and Polyethylene (LDPE, LLDPE)

Their prices have moved together.

Gas pipelines and city gas (energy) and Polyethylene (LDPE, LLDPE) (chemical): 1 relationship.

How they are linked

1. Price link: distribution pipe

Cost and price · Strong · Both ways

Most new low-pressure gas mains are polyethylene pipe, which is cheap and resists corrosion. The plastics proxy correlates at 0.62 for yearly moves, a link that partly reflects both prices responding to oil and gas costs.

  • 0.06 monthly change correlation
  • 0.62 12-month change correlation
  • 0.64 fitted elasticity

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