For the Quarter Ending June 2025
Asia-Pacific
• Oxygen Price Index in APAC saw an overall increase of 7.6% during Q2 2025, ending June at USD 355/MT FOB Shanghai (China). Prices rose by 3.0% in April and 4.4% in May due to tightened supply from maintenance shutdowns and logistical disruptions, before stabilizing in June amid subdued downstream demand and offsetting supply constraints such as monsoon-related port congestion and weather disruptions.
• Why did the price of Oxygen change in July 2025 in China? In early July, Oxygen prices in China remained stable. Soft demand from the steel and construction sectors was offset by tight supply fundamentals, stemming from port congestion, extreme weather events, and restrained plant operations.
• The Oxygen Production Cost Trend in China fluctuated throughout Q2 2025. In April and May, production costs increased due to high input prices, environmental restrictions, and maintenance shutdowns at key gas separation units.
• Oxygen Demand Outlook stayed weak across Q2 2025, especially from the steel and construction sectors. The steel sector—the largest consumer—reduced output significantly, with smelting volumes dropping for three consecutive months.
• The export momentum of Oxygen remained negligible as most Chinese supply was consumed domestically. The domestic market faced no significant inventory pressure, but exporters observed sluggish international inquiries, particularly due to limited global construction activity and a decline in galvanized sheet exports in May.
• Domestic procurement in China remained conservative throughout the quarter. Buyers, particularly from construction and metal fabrication sectors, limited purchases to short-term needs due to uncertain project pipelines, financial constraints, and seasonal lulls during holidays and monsoon disruptions.
North America
• Oxygen Price Index in the USA showed a modest increase during Q2 2025, due to a mild recovery in industrial activity and seasonal restocking. By June, prices largely stabilized as rising inventory levels met flattening demand from key downstream sectors like steel and infrastructure.
• Why did the price of Oxygen change in July 2025 in the USA? In early July, Oxygen prices remained stable across the U.S. Moderate industrial demand and soft construction activity were balanced by stable production rates and healthy stock levels.
• The Oxygen Production Cost Trend in the U.S. stayed relatively stable during Q2. Though energy prices were slightly elevated in April due to refinery outages on the Gulf Coast, most oxygen plants operated normally. By June, lower natural gas prices and stable electricity costs reduced the upward cost pressure for air separation units (ASUs), allowing manufacturers to maintain pricing discipline.
• Oxygen Demand Outlook in Q2 2025 remained mixed. Demand from the steel industry showed minor recovery as output rebounded from Q1 lows, though infrastructure-related consumption remained sluggish amid delays in federal funding rollouts. Medical-grade oxygen demand held steady, but did not significantly impact industrial pricing trends.
• The export momentum of Oxygen from the U.S. remained minimal during Q2, as most production was directed toward domestic consumption. Weak overseas demand for U.S.-sourced metal fabrication gases and stable Latin American markets limited export opportunities.
• Domestic procurement in the USA followed a cautious approach through Q2 2025. Construction and fabrication firms maintained just-in-time purchasing strategies due to weak order pipelines and tight working capital.
Europe
• Oxygen Price Index in Europe witnessed a marginal increase during Q2 2025, amid fluctuating energy costs and intermittent refinery maintenance activity.
• Why did the price of Oxygen change in July 2025 in Europe? In early July, Oxygen prices in Europe held steady. Modest industrial activity and subdued demand from the steel and construction sectors were offset by persistent structural constraints such as high energy tariffs and regional supply bottlenecks.
• The Oxygen Production Cost Trend in Europe fluctuated through Q2 2025. April and May saw elevated energy input costs due to carbon pricing volatility and high electricity rates across Germany and Central Europe. While natural gas prices eased by June, overall production costs remained higher than pre-2024 levels, especially for smaller air separation units with limited efficiency.
• Oxygen Demand Outlook remained weak across major EU countries throughout the quarter. Steelmakers operated below capacity due to muted automotive and construction demand, while infrastructure activity was constrained by inflationary pressures and delayed project rollouts. The medical sector maintained stable but non-influential volumes, leaving industrial oxygen demand largely underwhelming.
• The export momentum of Oxygen from Europe stayed limited in Q2 2025. High production and transport costs made EU-sourced oxygen less competitive in international markets.
• Domestic procurement in Europe remained restrained during the quarter. Buyers in sectors like metal fabrication, shipbuilding, and construction adopted cautious procurement strategies, favoring short-term contracts and local suppliers.
For the Quarter Ending March 2025
North America
In Q1 2025, oxygen prices in the North American region, particularly the USA exhibited a downward trend, reflective of various market dynamics. In January, prices saw a modest increase, driven by supply chain adjustments and seasonal demand variations amid harsh winter conditions. However, as February rolled in, a notable price drop occurred, influenced by a supply surplus and improved import efficiencies, particularly from Asian manufacturers. This decline was further supported by a significant reduction in freight costs, enhancing supply chain affordability.
By March, oxygen prices underwent a substantial decrease, attributed to weak downstream demand and a notable inventory accumulation. Despite pre-emptive buying by some firms anticipating tariff changes, overall consumption faltered due to project delays and subdued activity in construction, especially within residential sectors. The continuous inflow of imports and declining logistics costs contributed to further oversupply, leading market participants to adopt a cautious stance on procurement.
In summary, the significant fluctuations in oxygen prices during Q1 2025 mirrored broader trends in the construction sector, characterized by excess supply amidst inconsistent demand and economic uncertainty.
APAC
In Q1 2025, the oxygen market in the APAC region, particularly China experienced an upward price trend, driven by robust demand across healthcare and industrial sectors. In January, prices surged due to strong healthcare sector demand, with increased orders and exports reflecting growing consumer confidence. Despite moderate domestic production levels, sellers capitalized on this demand, successfully raising prices.
February continued this trend, propelled by heightened construction sector activity and robust steel production. Post-Lunar New Year recoveries and government investments in infrastructure projects significantly increased oxygen demand, particularly for steelmaking. Supply constraints emerged due to rising industrial consumption, maintaining elevated prices.
The trend persisted into March, with prices rising amid tightening supply and dwindling inventories, compounded by tariffs increasing production costs. Recovery in the real estate sector and escalating infrastructure projects further stimulated demand, particularly in steel manufacturing and related applications. Proactive ordering behaviors among buyers in anticipation of further price increases reflected positive market dynamics, establishing oxygen as a vital resource across industrial sectors. Overall, Q1 2025's oxygen market dynamics highlighted strong resilience amid evolving economic conditions in China.
Europe
In Q1 2025, the price trend for oxygen in the European region, particularly Germany closely mirrored the developments in the construction sector. January initiated the quarter with stable oxygen prices, supported by efficient manufacturing and moderate supply levels. The production levels remained consistent in response to the steady downstream, supporting the pricing stability.
February saw a slight uptick in oxygen prices primarily due to an increase in production costs influenced by rising feedstock prices. However, demand continued to lag as elevated inflation and high material costs hampered construction activities, leading to reduced purchasing of materials including Oxygen.
By March, oxygen prices stabilized once more, reflecting a balance between steady supply and subdued demand dynamics. Despite improvements in logistics and cheaper global freight rates, a sluggish construction sector, particularly in residential projects, curtailed replenishment activities thus limiting growth. Consequently, manufacturers remained cautious, with procurement limited primarily to immediate project needs rather than building up inventories. Overall, the market sentiment remained cautiously optimistic.
For the Quarter Ending December 2024
North America
In Q4 2024, Oxygen prices in North America, particularly in the USA, showed notable fluctuations driven by demand dynamics in the construction sector.
Oxygen prices declined in October, due to weak demand from the downstream construction sector, impacted by increased rainfall and a slowdown in construction activities. Cement sales dropped, leading to lower ready-mix concrete volumes, which exerted downward pressure on Oxygen prices. Despite the reduced demand, the supply remained stable with sufficient inventory from overseas markets.
The downward trend in Oxygen prices persisted in November, primarily due to the influx of cheaper imports and a decline in global freight rates. The construction sector, anticipating lower production levels, further reduced its procurement activity. High interest rates also contributed to the slowdown in construction activities, affecting the demand for Oxygen. The overall demand remained subdued due to broader economic uncertainties and reduced construction sector activities.
As for December, a shift occurred as rising import costs from overseas, driven by higher ocean freight rates, led to increased market value for imported Oxygen. Construction spending remained steady compared to November, indicating moderate consumption of Oxygen. Despite the high import costs, the supply remained stable without major disruptions. The demand from the construction sector, although moderate, was stable, preventing significant price fluctuations.
APAC
The APAC oxygen market, specifically in China, exhibited a volatile price trend during Q4 2024. October witnessed a price decline due to weak steel demand, while November and December saw price increases driven by a rebound in the construction sector and increased steel exports. The overall quarterly trend shifted from bearish to bullish.
Oxygen prices in China decreased in October, due to weak demand from the steel manufacturing sector. While steel production showed a brief rebound, overall demand remained under pressure due to a weak property sector and financial difficulties within steel mills. Limited recovery in steel consumption and slow infrastructure growth contributed to the downward price pressure.
In contrast to October, oxygen prices rose by 1.6% in November, due to a recovery in China's construction sector. Factory activity expanded, driven by stimulus measures, and steel demand remained steady across various sectors. The construction sector's growth (3.1% increase) fueled additional oxygen demand, reinforcing the bullish trend. A surge in steel exports further increased demand.
Oxygen prices continued their upward trend in December, increasing by 1.6%, reflecting strong demand driven by a recovering construction sector. Record infrastructure investments boosted construction activity, creating significant oxygen demand for various construction processes. Supply-side constraints, including production bottlenecks and severe port congestion, exacerbated the price increase.
Europe
The European oxygen market experienced a consistent downward price trend throughout Q4 2024, mirroring the weakness in the construction sector The persistent decline in construction activity, coupled with economic and political uncertainties, created a bearish market environment.
In October, the Oxygen market reflected weakening demand in the metal fabrication sector, impacted by weak economic conditions and political uncertainty. Reduced activity across commercial, civil engineering, and residential construction likely translated to lower oxygen demand and, consequently, lower prices.
The downward trend in Oxygen prices continued in November, reflecting a decline in construction activity and reduced consumption in the cement sector. The sharp drop in new orders in Germany's construction industry further reinforced the weak demand, indicating continued downward pressure on Oxygen prices.
A significant downturn in Oxygen prices occurred in December, mirroring the recessionary conditions in Germany's construction sector. Reduced demand for building materials and a pessimistic outlook among construction companies point to continued weak demand for oxygen and, therefore, lower prices.
For the Quarter Ending September 2024
North America
Oxygen prices remained confined to a narrow range in Q3 2024, reflecting the influence of several interconnected factors. The U.S. economy displayed mixed resilience, maintaining momentum despite ongoing inflation concerns and geopolitical challenges.
Supply dynamics were influenced by consistent manufacturing output and shifting trade conditions. The Producer Price Index (PPI) for manufacturing edged down from 249.624 in Q2 to 248.383 in Q3, indicating modest cost reductions for producers. The economy benefited from inventory replenishment efforts, with GDP growth reaching 3.0% in Q2 and forecasted to rise 2.7% for the year.
Consumer and business investments, supported by the CHIPS Act and other policies, sustained demand, while inflation eased below 3.0% by July. However, risks to supply chains emerged from geopolitical tensions in Ukraine and the Middle East and the possibility of new trade tariffs. Although the Fed’s expected rate cuts aim to maintain economic growth, uncertainties in labor markets and trade policy could impact supply conditions through 2025.
Asia
In Q3 2024, the Oxygen pricing landscape in the APAC region witnessed a notable decline, with China experiencing the most significant price changes. Various factors influenced the market prices, including reduced demand from the construction and chemical industries, leading to weaker market fundamentals for manufacturers. The slowdown in real estate activities further dampened demand, exacerbating the overall decrease in prices. Weather disruptions, such as heavy rainfall and typhoons, impacted production activities, while global shipping challenges contributed to elevated transportation costs. The quarter also saw disruptions in logistics due to Typhoon Gaemi and the Dragon Boat Festival holiday. In China specifically, the pricing trend exhibited a consistent downward trajectory throughout Q3 2024. The quarter recorded a notable percentage change of -5% from the previous quarter, with a further -3% decrease noted between the first and second halves of the quarter. The quarter-ending price for Oxygen FOB Shanghai in China stood at USD 310/MT, reflecting the prevailing negative sentiment in the pricing environment.
Europe
During Q3 2024, Oxygen prices in Europe fluctuated within a narrow range, influenced by economic uncertainties linked to the ongoing conflict in West Asia and sluggish growth in both Europe and the U.S. Rising freight costs, container shortages, and logistical issues were prominent. Shipping giants such as MSC and CMA CGM raised FAK rates to as high as $6,500 per container, driven by space limitations and added operational fees. Delays due to Red Sea disruptions and Singapore port congestion further complicated the situation. Air freight rates from Northeast Asia to Europe also spiked, fueled by booming e-commerce and semiconductor demand, with spot rates rising 40% year-over-year. Despite efforts to expand capacity, the imbalance between outbound and return loads persisted. With rising geopolitical tensions and seasonal demand, freight market volatility is likely to extend into Q4. Economically, Europe experienced stagnation in Q3, as Germany’s industrial sector struggled with weak output, high energy costs, and falling exports, contributing to broader challenges across the eurozone.
Frequently Asked Questions (FAQs):
1. What is the current price of Oxygen in APAC?
By the end of Q2 2025, Oxygen prices in China stood at approximately USD 355/MT FOB Shanghai.
2. Why did Oxygen prices change in July 2025?
• APAC: Prices remained stable as soft demand from steel and construction was offset by tight supply fundamentals caused by monsoon disruptions and plant slowdowns.
• North America: Prices held steady amid moderate industrial demand and stable production. High inventories and balanced supply-demand dynamics limited any price movement.
• Europe: Prices were unchanged as subdued industrial activity and weak downstream demand were countered by high energy tariffs and regional logistical constraints.
