# Oil and product pipelines and Steel

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

Source page: https://www.materialinsights.org/links/oil-and-product-pipelines-and-steel/

[Oil and product pipelines](https://www.materialinsights.org/energy/e_oil_pipelines/) (energy) and [Steel](https://www.materialinsights.org/commodities/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.