Steel fabrication compressed gas is integral to the welding, cutting and forming industries, and lead supplier Praxair is accused of price gouging its customers.

A variety of gasses and gas blends are used in steel fabrication. Gasses are sensitive to pressure and temperature, which means their use and storage must be strictly controlled.

A recently filed class action lawsuit alleges Praxair has violated its contracts for years by initiating unauthorized automatic annual price increases and by imposing new fees that are actually price increases disguised as “fuel surcharge/energy surcharge” costs.

Praxair allegedly instituted the illegal price increases despite its contracts allowing legal price increases every year of a certain percentage or an amount related to an inflationary index. In many of its contracts, Praxair also gives itself the leeway to increase prices as long as the company provides a 15-day advance notification of such an increase. According to at least one class action lawsuit, the company has increased prices but not in line with these contractual obligations.

Steel Fabrication Compressed Gas Options

The steel fabrication industry depends upon a large assortment of gases and gas mixtures in order to complete both small- and large-scale projects. With more than 100 different welding methods performed today, a wide variety of gases are needed.

Among the most commonly used gases in fabrication are:

Argon: Argon creates an inert gas shield, but may be blended with carbon dioxide, helium, hydrogen, oxygen and nitrogen to improve the stability of a welding arc. Argon also can help eliminate bubbles from molten metals to allow for smooth castings.

Oxygen: Plasma cutters use oxygen, which also may be used in laser cutting.

Hydrogen: The lightest gas, hydrogen enhances plasma welding and plasma cutting. Due to its ability to hold up in high temperatures, hydrogen also is used in stainless steel manufacturing.

Acetylene: Acetylene releases the highest heat of all the gases, which is why it is often used for welding, brazing and cutting steel alloys that measure less than one inch thick.

Carbon Dioxide: Often used with argon as a shielding gas during welding, carbon dioxide helps prevent the contamination of molten weld metal when the welder is engaged in a gas-shielded electric arc welding process.

Helium: Due to its high thermal conductivity, helium is used when high heat is needed with welding aluminum, stainless steel, copper and certain magnesium alloys.

Nitrogen: Often used as an assist gas with laser cutting or plasma cutting, nitrogen also may be used as a component of shielding gas needed in stainless steel welding processes.

Praxair also offers customers the option of propane and a variety of blended gases.

Steel fabrication compressed gas choices depend upon the materials used and the conditions upon which they are being used. The steel fabrication industry relies upon gas providers, such as Praxair, to provide clean, pure and timely gas and associated products at the agreed-upon price.

Unfortunately, steel companies allegedly may be paying Praxair a lot more than they agreed to in their contracts due to Praxair instituting automatic rate increases and charging unsubstantiated fees.

This article is not legal advice. It is presented
for informational purposes only.