After nearly complete industrial disruption because of COVID-19, the situation is improving fast in the year 2021. There were lockdowns in every part of the world with the global pandemic playing havoc. Only the industries manufacturing essential commodities were allowed to continue their operation the rest were shut down. Obviously, it caused economic distress to the manufacturing sector.
Moreover, this sector is heavily dependent on the use of industrial gases mainly oxygen and nitrogen. And, industrial oxygen production was completely diverted to meet the medical requirements caused by the pandemic. With normalcy returning to the industrial activity, there is high demand for industrial gases— oxygen and nitrogen.
Rise in demand for industrial oxygen in steel industry
Most of the manufacturing industries are dependent on industrial gases. Let’s take the example of steel industry which cannot function without oxygen as it requires the use of highly reactive gas for sustaining the burning process. With the lockdowns now lifted the industrial activity has mostly recovered and positioned for expansion.
This would require increase in the production of industrial oxygen especially so in the Indian steel industry which can now reap the benefit of increased demand for steel with the Chinese manufacturers withholding their inventory for domestic use. This leaves India as the only big steel producer to leverage their steel production in the international market.
Increase in demand for industrial oxygen in the chemical industry
Continuing with the increase in demand for industrial oxygen, chemical industry is not far behind in the use of oxygen for manufacturing their products. It is a vital industry for the modern economy which uses raw materials like oil, air, water, minerals and natural gas for manufacturing over 70,000 different types of products.
The industry makes products including agricultural chemicals, industrial organic chemicals, industrial inorganic chemicals such as plastics, synthetics; a drug, soap, cleaners, toilet goods, paints, etc. With the revival of demand for chemical products, the demand for oxygen has gone up with industrial gas industry gearing up for installing oxygen gas plants all over the globe.
Demand of nitrogen high in the food industry
During most of 2020 and 1st quarter of 2021 the food industry was in bad shape as the global pandemic was rampaging throughout the globe. This period had a debilitating effect on the industry as hotels and restaurants remained shut down driving down the demand for packaged food.
Even multiplexes, entertainment theme parks and other such outlets were closed thus negatively impacting the demand for food products. With much of the economy showing strong signals of recovery, the food and associated industries such as bars, restaurants and theme parks are even now being reluctantly opened, there is definitely a recovery driving the demand for nitrogen up. In the immediate future, the industry will see full recovery so will the demand for nitrogen gas plants.
Recovery in economic activity will drive demand in Industrial gas industry
With most of the sectors of the economy witnessing strong recovery, the industrial gas industry will also see the demand for oxygen gas plants and nitrogen gas plants rise. Growth in the manufacturing industry requires the use of oxygen and nitrogen.
Already, oxygen is in high demand for medical purposed to tackle the challenge of the global pandemic. With increasing industrial activity the demand for oxygen for industrial applications will also rise. In the coming days, the oxygen industry is projected to see a surge in demand for oxygen gas products.
