Oxygen Market Update 2025-2026: Price Trends, Supply-Demand Dynamics and Industry Outlook

1. Market Overview & Global Scale

Oxygen is the most fundamental bulk industrial gas and core medical raw material, mainly produced via cryogenic air separation, PSA (pressure swing adsorption) and membrane separation processes, covering purity grades from industrial grade 90%~99.5% to electronic ultra-high purity oxygen ≥99.999%. Multiple third-party research institutions released differentiated market valuation data for 2025–2026:

• Mordor Intelligence: Global oxygen total consumption hit 91.22 million tons in 2025, projected to reach 95.38 million tons in 2026, with a 4.56% CAGR from 2026 to 2031; total market value of global oxygen industry reached USD 49.47 billion in 2026.

• Fact.MR: Global high-purity oxygen market size stood at USD 30.2 billion in 2025, driven by semiconductors and medical care, expected to grow at a 6.0% CAGR through 2035.

• Domestic statistical data: China’s oxygen market scale exceeded RMB 550 billion in 2025, forecast to hit RMB 352.5 billion for domestic procurement alone in 2026, with annual demand growth of 7.0%.

Demand structure is split into three core segments: industrial oxygen accounts for 58.2% of total consumption (steel metallurgy takes up nearly half), medical oxygen 29.4%, and special application oxygen (semiconductor, aerospace, environmental governance) 12.4%.

2. Regional Supply & Consumption Pattern

2.1 Asia-Pacific (Largest Production & Consumption Zone)

The region contributes 49.6% of global oxygen demand and 62.7% of total air separation capacity, with China as the absolute core market.

• China: 2025 total oxygen production capacity reached 85 billion cubic meters, actual output 76.5 billion cubic meters, capacity utilization rate around 90%. East China occupies 35% of domestic industrial oxygen consumption, supported by steel, chemical, photovoltaic and wafer manufacturing clusters. New air separation units were put into operation in Jiangsu, Shandong and Guangdong in Q1–Q2 2026, yet seasonal plant maintenance and steel mills retaining self-use oxygen tightened spot supply periodically.

• South Korea, Southeast Asia: Massive 12-inch wafer fab expansion boosted ultra-high purity oxygen import demand, local on-site PSA supporting facilities lag behind, relying on bulk liquid oxygen supply from China and Japan.

2.2 Europe

Oxygen market maintains balanced supply and demand in 2026 Q1–Q2. Bulk liquid oxygen spot price stabilized at USD 0.18/kg, without sharp fluctuations. Steady consumption from steel hydrogen-oxygen smelting, metal cutting and municipal wastewater treatment kept basic demand stable; complete local air separation layout and controllable electricity costs restrained price surges. EU carbon reduction policies accelerated elimination of small high-energy-consumption air separation equipment, pushing industrial oxygen product grades upward.

2.3 North America

US bulk oxygen FOB price averaged USD 250/MT in late 2025, lower than China’s USD 360–370/MT due to low-cost industrial power and mature air separation infrastructure. Shale gas by-product oxygen purification technology lifted regional self-sufficiency to 78%. Medical oxygen demand maintained steady growth driven by aging population and home oxygen therapy penetration; logistics freight costs became the main upward pressure on delivered prices.

2.4 Latin America

Regional industrial production weakened in early 2026, steel and metal processing consumption declined, pulling liquid oxygen spot price down 4.9% to USD 0.39/kg. Newly commissioned air separation plants brought excess supply, while falling local electricity costs further suppressed factory offer prices.

3. 2025–2026 Global Oxygen Price Trend Analysis

3.1 China Domestic Liquid Oxygen Price Track

2026 witnessed a continuous upward cycle of liquid oxygen prices from April to early June:

• Early June 2026 national average liquid oxygen factory price hit RMB 499/ton, up 15% month-on-month, breaking the annual peak; North China Hebei market saw the strongest rally, with northern Hebei mainstream price reaching RMB 730–760/ton, a 38% month-on-month surge, as local steel mills reserved large volumes for self-use and reduced external sales, tightening spot circulation resources.

• Cost side: Power consumption accounts for over 65% of air separation production cost. Persistently high industrial electricity and coal prices formed long-term cost support; centralized annual maintenance of multiple medium-to-large air separation units in Q2 reduced commodity oxygen supply.

• Seasonal cycle judgment: After mid-June, downstream steel overhaul starts and industrial chemical demand slows, oxygen prices are expected to shift from sharp rise to steady weak adjustment, with limited downward space due to high fixed power costs.

3.2 Overseas Regional Price Differentiation Logic

1. Europe: Flat price trend, balanced supply and demand, stable electricity cost, no obvious inventory pressure for distributors;

2. United States: Low raw material and power costs offset logistics pressure, overall price range stable with mild upward tendency;

3. Latin America: Weak industrial demand + new capacity release, prices trending down;

4. Southeast Asia: Shortage of local bulk liquid oxygen, import prices maintained high premium, forming obvious regional price gap with China mainland.

3.3 Long-term Price Core Drivers

• Upstream cost: Energy price fluctuation is the primary price determinant of oxygen;

• Supply side: Old small air separation units phased out, new large air separation construction cycle long, short-term supply elasticity low;

• Demand side: Steel, photovoltaic, semiconductor and medical rigid demand form bottom support, pushing the annual oxygen price center up by 5%–12% in the medium term.

4. Supply-Demand Dynamics Breakdown

4.1 Supply Side Characteristics

1. Production capacity concentration improved: Global industrial gas giants and domestic leading enterprises (Hangyang, Jiuzhou Energy) dominate large cryogenic air separation projects; scattered small PSA oxygen plants serve small medical and manufacturing clients, forming a dual competitive pattern of large centralized liquid oxygen supply + distributed on-site oxygen production.

2. Capacity expansion rhythm restrained: Large air separation projects have a construction cycle of 12–24 months, plus high power consumption and carbon emission constraints, new capacity release speed lags behind demand growth in high-consumption regions.

3. Supply seasonal volatility: Q2 each year is the centralized maintenance period for air separation equipment, forming periodic supply shrinkage; Q3 metallurgy, chemical industry enter peak production season, supply tightness reappears.

4. By-product oxygen recovery rises: Electrolytic hydrogen production, petrochemical reforming processes produce by-product oxygen, gradually entering commercial circulation and easing partial industrial supply pressure.

4.2 Demand Side Core Growth Drivers

1. Metallurgical industry (largest consumption sector, 49.6% of industrial oxygen demand): Basic oxygen furnace steelmaking, scrap metal cutting, hydrogen-rich oxygen low-carbon smelting technology popularization steadily lift oxygen consumption per ton of steel.

2. Medical & healthcare sector: Post-pandemic global medical oxygen infrastructure construction continues; aging population increases COPD, respiratory disease treatment demand; home portable oxygen concentrators and centralized hospital oxygen supply systems drive stable annual demand growth above 6%.

3. Semiconductor & new energy: Electronic grade ultra-high purity oxygen is indispensable for wafer cleaning, oxidation process; photovoltaic polysilicon production oxygen penetration rate reached 93.7% in 2025, becoming the fastest-growing demand segment with annual growth over 11%.

4. Environmental & chemical extension: Industrial wastewater advanced oxidation treatment, glass firing, chemical oxidation synthesis, food fresh-keeping and other fields expand incremental demand year by year.

4.3 Supply-Demand Balance Judgment 2025–2026

• Mature markets (Europe, North America): Supply and demand basically balanced, slight surplus of liquid oxygen supply;

• High-growth emerging markets (China, India, Southeast Asia: Structural supply shortage in peak seasons, sufficient supply in off-seasons; ultra-high purity electronic oxygen remains tight supply for a long time, relying on high-end specialized gas enterprises’ supporting capacity.

5. Competitive Landscape: Key Market Players

5.1 Global Multinational Industrial Gas Giants

Linde, Air Products, Air Liquide, Messer hold large-scale cryogenic air separation bases across major economies, with complete liquid oxygen storage, transportation and pipeline supply chains, occupying dominant share in high-purity medical and electronic oxygen market, with stable long-term supply contracts as core competitive advantage.

5.2 China Leading Domestic Suppliers

Hangyang Co., Ltd., Jiuzhou Energy, Qiaoyuan Gas and other enterprises focus on domestic air separation equipment manufacturing and bulk oxygen production, covering steel, chemical bulk industrial gas market, accelerating layout of electronic ultra-high purity oxygen supporting projects to replace imported products.

5.3 Regional Small & Medium Gas Enterprises

Mainly operate small PSA oxygen equipment and bottled oxygen distribution, serve local small factories, clinics and home oxygen users, facing pressure from high energy costs and market price competition, industry elimination speed accelerated from 2025.

6. Industry Outlook & Future Growth Opportunities (2026–2031)

6.1 Medium-term Growth Forecast

Global oxygen total consumption will grow at a 4.56% CAGR from 2026 to 2031, breaking 119.2 million tons by 2031; ultra-high purity oxygen market CAGR will reach 6%–8%, far exceeding ordinary industrial oxygen growth rate. China will remain the core growth engine of global oxygen consumption, driven by new energy and semiconductor industrial chain expansion.

6.2 Core Industry Opportunities

1. Low-carbon manufacturing matching demand: Hydrogen metallurgy, green steel, electrolytic hydrogen supporting oxygen recovery will open new demand increment;

2. Medical oxygen infrastructure upgrading: Grassroots medical institution standardized oxygen supply, home oxygen therapy market expansion brings stable long-term demand;

3. Electronic high-purity oxygen localization: Domestic wafer fabs reduce overseas gas procurement, local supporting ultra-high purity oxygen projects gain investment value;

4. Distributed on-site oxygen production: PSA and membrane separation small oxygen equipment replaces bottled liquid oxygen, reducing logistics cost for end users, becoming a new business growth point for gas suppliers.

6.3 Industry Risks & Restraining Factors

1. Energy price fluctuation risk: Electricity cost dominates production expenditure, sharp power price hikes will compress enterprise profit margins;

2. Environmental & carbon policy constraints: High energy consumption air separation projects face stricter approval thresholds, limiting capacity expansion speed;

3. Regional industrial recession risk: Slowdown in steel, chemical manufacturing directly drags bulk oxygen spot demand and prices;

4. Cross-regional logistics bottleneck: Liquid oxygen tank car transportation radius is limited, long-distance supply cost premium restricts market circulation efficiency.

6.4 Long-term Market Trend Summary

2025–2026 is a transition cycle for the global oxygen industry: ordinary industrial oxygen enters a weak balance pattern with periodic price fluctuations, while high-purity medical and electronic oxygen maintains tight supply and steady price upward trend. In the next five years, the industry will shift from simple capacity expansion to high-purity product upgrading and distributed supply chain layout; enterprises with complete air separation equipment manufacturing + bulk liquid oxygen supply + ultra-high purity gas purification integrated layout will obtain stronger profit stability and market competitiveness.