Argon demand strengthened as we came out of the recession, but the uncertainty of the new political environment has left producers questioning how to manage that growth, possibly adding more issues and questions than before.
Adding to the product management uncertainty is the future of how the new US administration backs clean energy projects requiring new large air separation units (ASUs) with significant argon potential. Production of argon has always been dependent on large volume oxygen production at ASUs. Previous to the recession, sluggishness in large oxygen-using markets – such as steel – hampered demand for oxygen, resulting in limited oxygen production, and therefore limited argon.
Investments in new or expanded capacity represents millions in capital investment and is 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 chemicals for oxidation processes and manufacturing applications like fabricated metals, primary metals, automotive, and food (see The US Industrial Gas Market Report, August 2016, gasworld.com/2010788.article).
... to continue reading you must be subscribed
