# Rail traction and Steel

Their prices have moved together.

Source page: https://www.materialinsights.org/links/rail-traction-and-steel/

[Rail traction](https://www.materialinsights.org/energy/e_rail_traction/) (energy) and [Steel](https://www.materialinsights.org/commodities/steel/) (commodity): 1 relationship.

## How they are linked

### 1. Price link: main material

*Cost and price · Weak · Both ways*

Wagons, bogies, wheels and car bodies are largely steel. The steel index shows little link, because orders are priced years ahead with escalation clauses. Steel costs reach rolling stock prices only slowly, after contracts reset.

- **0.12** monthly change correlation
- **0.07** 12-month change correlation
- **0.17** fitted elasticity

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