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Downstream Demand Pushes Carbon Dioxide Prices in the US Market
Downstream Demand Pushes Carbon Dioxide Prices in the US Market

Downstream Demand Pushes Carbon Dioxide Prices in the US Market

  • 21-Mar-2023 5:33 PM
  • Journalist: Kim Chul Son

Texas- Carbon Dioxide prices continued to incline in the US market despite the fluctuating Natural Gas prices and declining production costs. As the weather conditions get warm, the demand for cold and carbonated beverages is rising in the market. Soft and energy drinks manufacturers have started preparing themselves for heavy orders to cater to the domestic and international demand outlook. Liquid Carbon Dioxide manufacturers received frequent inquiries about the product towards the end of the second month of 2023 and continued to do the same in March 2023. The final prices of Liquid Carbon Dioxide ranged between USD 460-490 per MT, DEL Illinois in the US.

Global Natural Gas prices continued to fall due to warmer weather, ample supplies, and banking sector turmoil that has weighed on commodities. As a ripple effect, the production cost for Carbon Dioxide remained on the lower side easing the manufacturers and creating a wider profit range. The demand-supply chain narrowed in the US market. Moreover, the prices of Liquid Carbon Dioxide moved northwards as the demand for the product from carbonated beverages and other micro fields remained on a higher edge. 2022 faced a demand-supply challenge after Russia Ukraine war which was a geopolitical issue, and other factors such as declined inventories level and labor shortages contributed equally to impacting the global supply chain. Meanwhile, the inflation rate in the country started dropping in the year 2023, giving relief to the buyers and suppliers of Liquid Carbon Dioxide.

Consumers are showcasing a better demand outlook for diet cokes as compared with the classic coke as a precautionary concern regarding the health of the being. Apart from carbonated beverages, frozen food demand has inclined in the market as consumers favor instant food in their busy schedules. The US holds major production capacity and the stock availability of Liquid Carbon Dioxide and exports the same to European and Asian countries as well. The demand outlook for Liquid Carbon Dioxide from Asian countries (India, China, Taiwan, and others) is rising proportionally, impacting the final prices of Liquid Carbon Dioxide in the US market. As a ripple effect, the final prices of Carbon Dioxide are anticipated to continue to move forward, showcasing a positive curve in the market trend of the product. Continuous demand with better operative inventories will play a crucial role in governing the final prices of Liquid Carbon Dioxide in the US market.

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