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.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Oxygen market in the USA exhibited mixed price trends. Demand from the downstream construction sector has been moderate, contributing to a balanced market despite some price fluctuations. The steady, albeit not strong, demand from construction has played a role in maintaining a stable supply and demand equilibrium.
Manufacturing firms have operated at reduced rates during this period, reflecting a cautious approach amidst ongoing economic uncertainties. A notable development has been the decline in natural gas prices, which has significantly reduced manufacturing costs and provided some relief to producers. Recent reports indicate that natural gas prices have dropped, easing production expenses and supporting more stable pricing for Oxygen. However, the market has faced challenges due to broader economic pressures. Tight monetary policies across the USA, with the Federal Reserve maintaining the federal funds rate at 5.25%-5.50% due to persistent inflation and a tight labor market, have limited economic activity and purchasing power. This has led to more cautious procurement practices and added complexity to the market dynamics.
Overall, Q2 2024 for Oxygen in the USA has been marked by moderate construction sector demand, reduced manufacturing costs due to falling natural gas prices, and economic pressures from tight monetary policies, leading to a mixed price environment.
APAC
The second quarter of 2024 has seen a mixed trend in Oxygen pricing across the APAC region, with several compelling factors driving market dynamics. The quarter has been marked by increased production costs, primarily due to rising energy prices and logistic complications. Additionally, heightened demand from the industrial and medical sectors has contributed to the bullish market sentiment. Disruptions in the supply chain, exacerbated by adverse weather conditions and logistical hindrances, have further fueled the price surge. Notably, manufacturing activities that were temporarily halted due to maintenance shutdowns during the May Day holiday have also led to tighter supply scenarios.
China has particularly stood out in this context, experiencing the most significant price changes. The Oxygen market in China has been propelled by limited production activities and cautious restocking behavior among downstream manufacturers. Seasonality has played a crucial role, with post-holiday periods characterized by low inventory levels and moderate replenishment activities.
Overall trends reveal a correlation between increased shipping costs and higher Oxygen prices. The quarter saw an approximately 4% rise in prices from the previous quarter, underscoring a steady upward trajectory. The latest quarter-ending price for Oxygen FOB Shanghai in China is recorded at USD 335/MT, encapsulating the overall bullish pricing environment driven by supply constraints and robust downstream demand.
Europe
In the second quarter of 2024, the Oxygen market in Europe has exhibited mixed price trends. Demand from the downstream construction sector has been average, contributing to a relatively stable market despite some pricing fluctuations. The consistent, though not strong, demand from construction has helped maintain a balanced supply and demand situation.
Manufacturers have scaled back operations during this period, adopting a careful approach in response to prevailing economic uncertainties. A significant contributor to lowering production expenses has been the drop in natural gas prices, which has alleviated some of the cost burdens for producers. Nonetheless, the market has encountered difficulties due to overarching economic pressures. Stringent monetary policies in Europe, enforced by the European Central Bank to combat ongoing inflation, have constrained economic activity and diminished consumer spending power. As a result, procurement practices have become more reserved, and manufacturers have taken a more cautious stance.
In summary, Q2 2024 for Oxygen in Europe has been marked by average demand from the construction sector and reduced manufacturing costs due to falling natural gas prices. Despite these stabilizing factors, tight monetary conditions have introduced challenges, resulting in a mixed and complex market environment.
