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27 min ago 2 min read
Liquid argon prices in China have surged as low operating rates at air separation units (ASUs), post-holiday restocking and export orders tighten supply.
Prices rose by 240% between early May and September, according to YIGAS International, with further increases in October. Between 8 and 20 October, prices in East China rose by 49.4% to around RMB 3,057/tonne ($458/tonne), while those in Northeast China increased by 38.3% to RMB 2,540/tonne ($380/tonne), reported ChemNet.
The latest increases followed the week-long National Day holiday, when downstream buyers returned to the market to replenish stocks. The release of restocking demand coincided with low operating rates at upstream ASUs, tightening availability.
Argon is produced as a byproduct of air separation, meaning its availability is closely linked to the operating rates of units primarily producing oxygen and nitrogen. When ASUs reduce output or undergo maintenance, argon production can fall, leaving the market vulnerable to changes in demand.
Weak demand from traditional industries, particularly steel, and lower refinery operating rates have contributed to subdued utilisation across China’s air separation sector, according to ChemNet.
Data from market research firm Longzhong Information showed that, as of 15 October, the capacity utilisation rate among 245 tracked gas producers stood at 63.6%, down 0.48 percentage points from the previous week. Weekly liquid argon output across sampled producers fell 1.36% week on week to 58,800 tonnes.
Supply has also been diverted towards export orders in northern China, according to reports, adding to pressure on domestic availability.
Demand from traditional industrial sectors remains weak, but semiconductor manufacturing and other advanced industries have supported argon consumption. The gas is used in semiconductor fabrication processes such as plasma deposition and etching, as well as in industrial welding.
A similar supply squeeze affected tungsten hexafluoride , when Japanese production suspensions amid shortages of electronic-grade tungsten powder tightened supply to semiconductor manufacturers.
China was the world’s second-largest argon exporter in 2024, with exports valued at $42.1m, behind Germany at $50.6m, according to trade data.
