Energy price transmission on prices of cement and iron production in EURO 19 EU countries

Abstract

The article focuses on the transmission of energy prices to cement and steel prices. No significant investigations have been done on this focused area. An exploration of similar scientific articles has been performed mainly focusing on energy efficiency of cement production and iron/steel production. Furthermore key articles focusing on energy price transmission were investigated. Using indexes for EURO 19 data for producer prices for energy, cement and iron/steel, an investigation was performed to see if these variables are cointegrated. During the analysis the augmented Dickey-Fuller test, Johannsen test and Vector error correction model were used. The results show a strong cointegration between energy price and iron/steel prices. These results may be used by policy makers or stakeholders of given industries.