# Argon: Cycles

How plant shutdowns make argon vanish

Source page: https://www.materialinsights.org/chemicals/argon/cycles/

What this tab covers How its prices and margins move: past booms and busts with price levels, the spread or margin that the industry watches, the drivers of the cycle and the metrics to track.

Argon prices swing because supply is fixed by oxygen production. When steel or ammonia plants cut output, argon disappears from the market while welding and solar demand stays. US distributors raised argon prices twice in 2014 by up to 25% and 15% (gasworld). In 2022 European ammonia and steel curtailments and the loss of Russian and Ukrainian rare gases tightened supply. In normal times bulk argon trades around $0.7-0.8/kg.
 The spread to watch **India CIF minus China FOB argon**

About $91/t in August 2026 ($786.09 less $695.30), roughly the freight and handling cost of moving cryogenic liquid (Procurement Resource).

#### Booms and busts

1. 2014 (US)

Tight US supply after ASU outages and strong demand; Airgas raised argon prices twice.

Up to 25% from 1 Jul 2014 and up to 15% more from 1 Nov 2014 (gasworld)

2. 2022

European ammonia and steel plants curtailed on high gas prices, cutting ASU runs; rare gas supply from Russia and Ukraine was limited by war.

argon price series not public; USGS notes continuing limits on rare gas supply from Russia and Ukraine (2026)

3. 2026

Stable to firm prices; India rose about 5.3% in the second quarter on fabrication demand while China was flat.

India CIF rose from about $725/t (Apr) to $786/t (Aug); China FOB about $675-695/t (Procurement Resource)

#### What drives the cycle

- **Oxygen demand from steel and chemicals.** Argon is a co-product, so steel or ammonia curtailments cut argon supply directly.
- **Welding and fabrication activity.** Two-thirds of US argon is welding; construction and manufacturing cycles move demand.
- **Solar ingot and semiconductor output.** Crystal pullers use argon continuously; Chinese solar expansion added large demand (indicative).
- **New argon-capable ASUs.** Projects add supply in large steps, as with four US units in 2025.

#### Metrics to track

| Metric | Why it matters | Where to track it |
|---|---|---|
| **Steel output and ASU outages** | supply signal | worldsteel; gasworld |
| **US argon sales and trade** | only official series | USGS Mineral Commodity Summaries |
| **Bulk argon price assessments** | market tightness | Procurement Resource; ChemAnalyst; IMARC |

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/argon/index.md)
- [Overview](https://www.materialinsights.org/chemicals/argon/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/argon/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/argon/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/argon/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/argon/feedstocks/index.md)
- [Trading](https://www.materialinsights.org/chemicals/argon/trading/index.md)
- [Movement](https://www.materialinsights.org/chemicals/argon/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/argon/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/argon/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/argon/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/argon/links/index.md)