Oil and product pipelines and Steel

Oil and product pipelines needs steel; their prices have moved together.

Oil and product pipelines (energy) and Steel (commodity): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Steel → Oil and product pipelines

Building or running Oil and product pipelines needs steel.

2. Price link: construction input

Cost and price · Weak · Both ways

New lines need large amounts of steel line pipe, which drives building costs and the tariffs needed to justify them. Existing tariffs do not move with steel prices, and monthly changes correlate at -0.01.

• -0.01 monthly change correlation
• 0.02 12-month change correlation
• 0.64 fitted elasticity

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