According to the recent Gas Review Industrial Observation (GRIO), the industrial gas market in Japan has been showing steady growth, except for cylinder gas (packaged gases).
The onsite, piping and liquid gas businesses for oxygen and nitrogen were moving along well in late 2010, but the demand for cylinder gas has been facing a ‘serious slump for which there is no sign of recovery’.
The steel and semiconductor sectors have remained stable, but the sense of uncertainty about gas demand was expanding, the GRIO report claimed in the October 2010 edition of The Gas Review.
The demand for separated gas was reportedly stable and the quarterly closings of the gas producers showed no element of instability either. However, TRG says that uncertainty for the future has been hanging over the industry due to concerns about the demand for industrial gas.
This is thought to be the case for a number of reasons, including a high dependency on exportation and uncertainty in the Chinese market, which is the main destination for exports. The bankruptcies of various end-users have also affected industrial gas companies in Japan.
* News taken from KK Gas Review magazine *