China industrial gas market: recent snapshot

China industrial gas market: recent snapshot

• Demand recovery is uneven: Electronics, EV batteries, photovoltaics, and specialty chemicals are driving pockets of growth for ultra‑high‑purity (UHP) gases, while traditional steel and real estate–linked industries remain softer,tempering bulk oxygen and nitrogen demand in some regions.

• Capex shifting to high‑tech clusters: New air separation units (ASUs) and onsite plants are concentrated in integrated petrochemical bases (Zhejiang, Guangdong, Liaoning) and semiconductor/ display hubs (Yangtze River Delta,Greater
• Bay Area, Bohai Rim).

• Policy tailwinds: “Dual‑carbon” goals (carbon peaking and neutrality) are pushing hydrogen, CO2 capture/usage, and cleaner process gases. Local incentives support hydrogen refueling, green ammonia, and renewable‑powered electrolysis pilots.

• Pricing and supply: Electricity price reforms and power curtailments in some provinces have raised operating costs for ASUs. Logistics and hazmat permitting remain tight but improving versus pandemic-era disruptions.

Recent business moves by major industrial gas groups

• Linde
  • Expanded onsite oxygen/nitrogen supply for integrated refinery‑chemicals and electronics parks; several new ASUs and pipeline networks commissioned or announced in East and South China.
  • Growing electronics specialty gases footprint (e.g., NF3, WF6, high‑purity ammonia) with local purification and transfill capacity to shorten lead times.

• Air Liquide
  • New long‑term supply contracts with semiconductor and battery materials customers; investments in multiple ASUs and hydrogen units, including low‑carbon H2 via SMR with CCS pilots or renewable H2 demonstrations with partners.
  • Launched CO2 management solutions and ultra‑high‑purity carrier gas services near fabs.

• Air Products
  • Added large onsite plants for syngas, hydrogen, and industrial gases serving coal‑to‑chemicals and refining projects in North and Northwest China.
  • Continued build‑own‑operate (BOO) model expansions and pipeline integrations; deeper push into hydrogen for mobility and chemicals, plus HP nitrogen for electronics.

• Messer / Yingde Gases
  • Strengthened regional ASU portfolios and bulk supply; selective moves into electronics gases and medical oxygen; optimization of existing pipeline grids in industrial parks.
  • Local champions (e.g., Hangzhou Oxygen Plant Group, Suzhou Jinhong, Hunan Kaimeite, Beijing Peric, Huate Gas)
  • Capacity additions in electronic specialty gases (SiH4, NF3, CF4, C4F8, HCl, NH3, N2O), high‑purity rare gases (Ne, Kr, Xe), and mixed excimer laser gases for panel and wafer fabs.
  • Multiple IPO-funded projects to localize critical gases and fill import gaps; increased investment in purification, analytics, and cylinder cleanliness.

• Newradar Gas
  • Expanded product lines in specialty gases and rare gases, including offerings for excimer laser gas mixtures (KrF/ArF/XeCl families), UHP carrier gases, and calibration gases.
  • Enhanced blending and analytical capabilities (ppb-level moisture/oxygen, GC/CRDS methods) to serve semiconductor, display, and medical sectors.
  • Broadened export channels while building domestic partnerships with OEMs and integrators for turnkey gas solutions and faster lead times.