Air Products Announces North American Price Increase for Liquid and Bulk Industrial Gas Products

Rhea-AI Summary

On September 21, 2020, Air Products announced a price increase for its products and services in North America, effective October 1, 2020. Liquid nitrogen and liquid oxygen prices will rise by up to 15%, while liquid carbon dioxide will also see a similar increase. Monthly service charges may increase by up to 20%. Other gases like helium, hydrogen, and argon will have price adjustments based on supply and demand. These changes are attributed to rising sourcing, production, and delivery costs, aimed at enhancing reliability and safety investments.

Positive

• Price increases may offset rising costs and improve profit margins.
• Investments in reliability and safety indicate a commitment to service quality.

Negative

• Potential customer dissatisfaction due to increased costs.
• Higher prices may lead to reduced demand for some products.

LEHIGH VALLEY, Pa., Sept. 21, 2020 /PRNewswire/ -- Effective October 1, 2020, or as contracts permit, Air Products (NYSE: APD) will increase product pricing, monthly service charges, and surcharges for merchant customers in North America. These adjustments include increases of:

• Up to 15% for liquid nitrogen and liquid oxygen
• Up to 15% for liquid carbon dioxide
• Up to 20% for monthly service charges

Some adjustments may be outside of these ranges based on specific situations. Helium, hydrogen and argon prices will also be increased based on supply/demand and cost situations and may be customer specific. 

These adjustments are in response to increases in sourcing, production and delivery costs, and support continued investments in reliability, security, and safety.

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the company's Form 10K for its fiscal year ended September 30, 2019.

View original content:http://www.prnewswire.com/news-releases/air-products-announces-north-american-price-increase-for-liquid-and-bulk-industrial-gas-products-301134694.html

SOURCE Air Products

FAQ

What are the price increases for Air Products' gases effective October 1, 2020?

Air Products will increase prices by up to 15% for liquid nitrogen, liquid oxygen, and liquid carbon dioxide, and up to 20% for monthly service charges.

Why is Air Products increasing its prices?

The price adjustments are due to rising sourcing, production, and delivery costs.

What other gases will see price increases by Air Products?

Helium, hydrogen, and argon prices will also be adjusted based on specific supply/demand situations.

How will the price increases affect Air Products customers?

Customers may experience higher costs, which could influence their purchasing decisions.

When will the new pricing take effect for Air Products?

The new pricing will take effect on October 1, 2020, or as contracts permit.