Natural gas and Nitric acid

Natural gas is a raw material for nitric acid; their prices have moved together.

Natural gas (energy) and Nitric acid (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Nitric acid

Nitric acid is made from natural gas: it is one of the raw materials its production routes start from.

2. Price link: energy and feedstock

Cost and price · Strong · Both ways

Natural gas makes ammonia, which makes nitric acid, so gas is the deepest cost driver. The proxy follows European gas over a year: yearly moves correlate at 0.78, though monthly moves correlate at only 0.13.

• 0.13 monthly change correlation
• 0.78 12-month change correlation
• 0.36 fitted elasticity

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