Argon demand has continued to strengthen coming out of the recession with key markets driving growth and some US regions finding argon tight.
Production of argon is dependent on large volume oxygen production at air separation units (ASUs). Previous to the recession, sluggishness in large oxygen-using markets like steel hampered demand for oxygen resulting in limited oxygen production, and therefore limited argon.
Investments in new or expanded capacity represent millions of dollars and are based on large and long-term demand drivers for industrial gas products. New ASUs or expansion activity typically results from a need to remedy regional supply issues or to replace aging and inefficient plants. However, the improving economic landscape has led to an increase in demand for oxygen, nitrogen, and argon across various sectors, especially in oil and gas, energy, fabricated metals, primary metals, automotive, and food (see “The US Industrial Gas Market Report” CryoGas, August 2015, p. 20).
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