Industrial Gases Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

In China, prices of liquid nitrogen and oxygen decreased in March 2023 due to market demand, whereas liquid argon costs increased significantly. April 2023 saw a 1% year-over-year decline in retail gas prices and a 4% quarterly decrease. In addition, for the same month, the unit price of liquid oxygen was CNY 460/ton, decreasing by 10% month over month; the unit price of liquid nitrogen was CNY 499/ton, decreasing by 3% month over month; and the unit price of liquid argon was 1,201 Yuan/ton, increasing by 1% month over month.

In North America, the price of nitrogen fluctuated throughout the third quarter of 2023, initially rising and then falling during the beginning and second halves of the period. A bleak demand picture and a fall in inquiries from producers of nitrogen gas contributed to the price decline. However, the average cost of inputs has increased at a faster rate during this quarter. Output prices rose as a result of these higher costs which are transferred to consumers.

In Asia-Pacific, prices for nitrogen remained steady in the third quarter of 2023 as a result of rising demand from a number of industries, including electronics, mining, fertilizers, and metals. Prices for natural gas likewise held steady during the course of the quarter. The packaging and pharmaceutical industries' increased demand caused a spike in nitrogen costs in the Indian market. There were plenty of stocks on hand, and the nation's industrial production was trending upward.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Plant Operators working in L’Air Liquide S.A. and Linde plc receive a 10% - 15% higher base salary compared to the salary received by Plant Operators working in BOC Limited and Universal Industrial Gases, Inc. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Industrial Gases category over the last two years:

In January 2023, Iwatani Corporation's fully owned subsidiary, Iwatani Corporation of America announced acquisition of Aspen Air U.S., LLC. The acquisition has enabled Iwatani to enter into the industrial gases industry in the United States. Iwatani will get Aspen’s wide range of industrial and medical clients, such as hospitals, the energy and chemical industries, packaged gases, and independent distributor networks.

In December 2022, Yingde Gases Group Company Limited announced the acquisition of Shanghai Nanhua Industrial Gas Company, Ltd. This acquisition will significantly increase the company's clout in the industrial packaged gas and medical oxygen sectors. It is a significant point in the company's strategic packaged-gas strategy, supporting the company in branching out into new packaged gas markets.

In April 2022, Air Products and Chemicals, Inc. announced the acquisition of L’Air Liquide S.A.’s industrial gas business division in the U.A.E. The acquisition is helping Air Products to strengthen its presence in Middle-East, growing its reach and regional presence in Bahrain and U.A.E, also improving the sourcing and reliability of its products.