# High-density polyethylene and Natural gas

Natural gas is a raw material for high-density polyethylene; their prices have moved together.

Source page: https://www.materialinsights.org/links/high-density-polyethylene-and-natural-gas/

[High-density polyethylene](https://www.materialinsights.org/chemicals/hdpe/) (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 → High-density polyethylene*

High-density polyethylene 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*

US and Middle East crackers run on ethane from gas, which makes them low-cost HDPE exporters. European gas moves with the resin proxy at 0.11 monthly and 0.75 yearly, little monthly tie but a strong yearly one.

- **0.11** monthly change correlation
- **0.75** 12-month change correlation
- **0.15** fitted elasticity

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