# Natural gas and Polyethylene (LDPE, LLDPE)

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

Source page: https://www.materialinsights.org/links/natural-gas-and-polyethylene-ldpe-lldpe/

[Natural gas](https://www.materialinsights.org/energy/natural_gas/) (energy) and [Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) (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.