With the onset of winter, the industrial gases market faces seasonal fluctuations in demand. The Industrial Gases Database, updated on December 23, shows that the current gas** is still at historically low levels. Bulk gases** decreased slightly sequentially, mainly due to seasonal factors. The first quarter (Q1) and the fourth quarter (Q4) of each year are usually the trough period for gas**.
At present, the cost of bulk gases such as oxygen, nitrogen, argon and other gases has fallen to the cost price of small gas manufacturers, which indicates that the market is close to the bottom. Nonetheless, the market generally believes that these gases have bottomed out and are not expected to be significantly larger in the future.
In terms of bulk gases, the following are the specific ** figures::
Oxygen: Currently** is 36919 yuan tons, down 58%, down 74%。
Nitrogen: Currently** is 45083 yuan tons, down 5 from November1%, down 72%。
Argon: The current ** is 135486 yuan tons, down 07%, a year-on-year increase of 562%。
In terms of rare gases, ** is also at a historical low. Here's the specific data:
Xenon: The current ** is 4713636 yuan m, down 108%, down 85 percent from last year9%。
Krypton: The current ** is 53977 yuan m, down 9 from November5%, down 864%。
Neon gas: the current ** is 200 yuan m, unchanged from November, down 79 from last year8%。
Helium: The current ** is 95795 yuan ton, down 2 from November2%, down 592%。
From the perspective of downstream demand, the operating rate and output of the steel industry have been affected to a certain extent this year, mainly due to factors such as the epidemic and power rationing. But by 2023, as these factors gradually ease, the operating rate and output of the steel industry will begin to pick up. In addition, the petrochemical industry is in the upward phase of the investment cycle, and the demand for industrial gases continues to grow.
According to the latest data:
The operating rate of the blast furnace was 7890%, up 318 percentage points, down 133 percentage points.
The operating rate of electric furnace is 6362%, up 760 percentage points, an increase of 096 percentage points.
Crude steel output in November was 76.1 million tons, up 2 percent from last year09%, down 378%。
Steel output in November was 110.44 million tons, an increase of 1 year over last year15%, down 287%。
In November, the processing volume was 59.53 million tons, down 014%, down 688%。
Ethylene output in November was 2.69 million tons, an increase of 7 percent year-on-year37%, down 454%。
In terms of investment, Hangyang shares and Shaangu Power are worthy of attention. As a leading industrial gas company in China, Hangyang Co., Ltd. has the synergistic advantages of the whole industry chain. In the context of domestic economic recovery, the rise in the volume and price of industrial gases is expected to become the core beneficiary of pro-cyclical. In addition, the merger of Hangyang and Gas Power Technology is accelerating, and the integration of the two industrial gas leaders will bring synergies.
Note: The data and opinions in this article are provided by the Tianfeng Machinery team and are for reference only.
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