In December 2024, the Asia-Pacific market witnessed a mixed trend in the APAC region. On one hand, China witnessed an upward trend in Oxygen prices, driven by economic stimulus measures. This resulted as a 1.6% increase in the FOB price. On the other hand, India displayed a contrasting trend.

The Oxygen market's growth can be attributed to the steelmaking sector, where it plays a crucial role. In China, the steel manufacturing sector continued its upward trajectory in December as reflected in Oxygen prices. This growth was driven by improved steel profits, falling port inventories, and market expectations of further stimulus measures. However, the gains were somewhat limited by the seasonal slowdown in demand.

On the supply side, Tangshan billet stock levels—a vital input for steel production—declined significantly. Year-end inventory adjustments by firms further constrained supply. Conversely, demand for Oxygen saw a slight increase, driven by a year-over-year rise in passenger vehicle sales in December. Increased construction activity and steel exports further bolstered demand for Oxygen.

The supply dynamics within the steel manufacturing sector in China saw a slight decrease, influenced by several interconnected factors. China's manufacturing sector continued to expand in December as market sentiment improved, according to NBS data. The steady expansion of the PMI suggested that the combination of macroeconomic policies continued to take effect during the month and China's economic prosperity level continued to improve.

However, the trend observed in the steel manufacturing sector in India is found to be the opposite. The Indian steel sector is facing mounting pressure from a confluence of factors, including declining domestic prices and intense competition from imports, primarily from China. This downward pressure on Oxygen prices is further exacerbated by the anticipated decline in steel capacity utilization in India. This decline is primarily attributed to an influx of cheap imports and slower-than-expected growth in domestic production impacting domestic demand for Oxygen. This disparity highlights the growing dominance of imports in the Indian market.

Looking ahead to 2025, the manufacturing industry is expected to continue its recovery, boosting demand for steel manufacturing. The demand for infrastructure construction and the real estate market is expected to remain stable, further supporting Oxygen demand. If the new Trump administration sets up large-scale trade barriers, the global economy is expected to be affected. Global inflation is likely to rise, so many major economies may tighten monetary policy. Commodities such as iron ore that are affected by global growth will weaken as demand weakens, as will crude oil and liquefied natural gas. This may impact demand for Oxygen.