HS Code:
Neon, classified under HS Code 28042910, is a noble gas used primarily in lighting, advertising signs (neon signs), and specialized applications such as high-voltage indicators and laser technology. It is a critical component in various industrial and technological processes due to its inert nature and unique luminescent properties when electrified. Global trade in neon is relatively niche but strategically important due to its specific applications and limited natural availability, often extracted as a byproduct of air separation processes for oxygen and nitrogen production.
Total Trade Volume
USD 60 million
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
8.0% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0.0% (under free trade agreements like EU-US trade partnerships)
Increased demand for neon in semiconductor manufacturing
Rising prices and supply chain pressures due to neon's critical role in excimer lasers for chip production
2021-2022
Geopolitical disruptions in major producing regions
Significant supply shortages and price spikes due to conflicts in Eastern Europe affecting Ukraine and Russia, key neon suppliers
2022
Shift towards alternative gases and technologies
Slow adoption of substitutes in certain applications, though neon remains irreplaceable in specific high-tech uses
2020-2023
The ongoing conflict has severely impacted neon production and export from Ukraine and Russia, which together account for over 60% of global supply. Many semiconductor manufacturers are seeking alternative suppliers or stockpiling neon.
February 2022 onwards
Global neon prices have surged by over 300%, causing production delays in the semiconductor industry.
In response to supply chain vulnerabilities, the US and EU have initiated policies to build strategic reserves of critical gases like neon to safeguard high-tech industries.
October 2022
Potential stabilization of prices in the long term, though immediate supply constraints persist.
Chinese companies have invested in air separation technologies to increase domestic neon production, aiming to reduce reliance on imports amid global shortages.
March 2023
Could lead to a more diversified supply chain, potentially lowering prices if production scales successfully.