Argon joins oxygen and nitrogen as a product of the air separation process.
Unlike these gases, argon is in much smaller concentrations in the air, meaning that for every ton of nitrogen or oxygen produced in the air separation process, a much smaller quantity of argon is extracted.
This co-dependent relationship between the three gases means that if there is reduced demand for oxygen or nitrogen, less argon will also be produced, making the gas’ supply and demand trends unpredictable; historically, supply of the gas has been tight.
Before the financial crisis hit, demand for argon had been growing rapidly, and with a lack of new capacity, the market was very tight, making the price of the gas rise.
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