For the Quarter Ending March 2024
North America
Oxygen prices in North America during Q1 2024 showed a mixed trend with a slight upward push. Steel production maintained healthy demand, while healthcare sector fluctuations contributed to regional price variations. Scheduled maintenance at air separation units caused temporary supply constraints, impacting prices in some regions.
Natural gas price increases moderately affected production costs. In the United States, prices saw a slight uptick, driven by temporary supply constraints, while Canada's market remained stable due to steady industrial activity.
Oxygen prices for Q1 2024 remained slightly optimistic, with a quarterly increase of USD 10/MT, prices remaining rangebound in the months of the first quarter and assessed at USD 230 per MT.
Asia Pacific
In Q1 2024, the Asia Pacific oxygen market witnessed steady growth driven by increasing demand across various industries. The healthcare sector continued to be a primary consumer, with rising requirements for medical oxygen amid ongoing efforts to combat respiratory illnesses and COVID-19. Additionally, industrial applications, particularly in steel production and chemical manufacturing, contributed to the market's expansion. Market dynamics were influenced by factors such as government initiatives promoting industrial development, infrastructure projects, and healthcare infrastructure upgrades. Furthermore, the market saw strategic collaborations and investments aimed at expanding production capacities and improving distribution networks. Thus, after the conclusion of the first quarter, Oxygen prices in China were assessed at USD 350 per MT on FOB basis.
Europe
The European oxygen market in Q1 2024 remained stable, underpinned by balanced supply and demand dynamics alongside steady input costs. Industrial activity across the continent, particularly in major hubs like Germany and France, sustained consistent demand for oxygen, supporting stable pricing. Despite potential risks such as geopolitical tensions in Eastern Europe and the possibility of industrial slowdowns, the market maintained cautious optimism. Natural gas prices, a critical factor in oxygen production, remained relatively stable, minimizing cost pressures on manufacturers. Logistics and transportation disruptions were minimal, ensuring efficient oxygen supply movement within the region. However, ongoing geopolitical tensions and the possibility of industrial slowdowns warrant close monitoring in the coming months to anticipate any potential market shifts.
