Onshore wind and Steel

Onshore wind needs steel; their prices have moved together.

Onshore wind (energy) and Steel (commodity): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Steel → Onshore wind

Building or running Onshore wind needs steel.

2. Price link: main input

Cost and price · Weak · Both ways

Towers and nacelles are mostly steel, so steel prices feed into turbine costs. The proxy, a US turbine index, does not track steel month to month (0.05) because turbines are sold on long contracts with prices fixed well before delivery.

• 0.05 monthly change correlation
• -0.01 12-month change correlation
• 0.26 fitted elasticity

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