Natural gas and Polyethylene (LDPE, LLDPE)

Natural gas is a raw material for polyethylene (LDPE, LLDPE); their prices have moved together.

Natural gas (energy) and Polyethylene (LDPE, LLDPE) (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Polyethylene (LDPE, LLDPE)

Polyethylene (LDPE, LLDPE) 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 producers crack ethane from gas, so gas prices set their cost and their export competitiveness. European gas moves with the proxy at 0.11 monthly and 0.75 yearly, a loose monthly but solid yearly tie.

• 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.