# Natural gas and Thermal coal

Their prices have moved together.

Source page: https://www.materialinsights.org/links/natural-gas-and-thermal-coal/

[Natural gas](https://www.materialinsights.org/energy/natural_gas/) (energy) and [Thermal coal](https://www.materialinsights.org/energy/thermal_coal/) (energy): 1 relationship.

## How they are linked

### 1. Price link: competing fuel

*Cost and price · Strong · Both ways*

Power generators switch between gas and coal depending on which is cheaper after carbon costs, and both are traded as seaborne fuels. They move together more than most pairs here: monthly changes correlate at 0.37 and yearly changes at 0.81, with recent years tighter (0.47).

- **0.37** monthly change correlation
- **0.81** 12-month change correlation
- **0.94** fitted elasticity

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