# Natural gas and Nitric acid

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

Source page: https://www.materialinsights.org/links/natural-gas-and-nitric-acid/

[Natural gas](https://www.materialinsights.org/energy/natural_gas/) (energy) and [Nitric acid](https://www.materialinsights.org/chemicals/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.