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Liquid Carbon Dioxide Prices Gains Pace as the Summer Season Instill Demand
Liquid Carbon Dioxide Prices Gains Pace as the Summer Season Instill Demand

Liquid Carbon Dioxide Prices Gains Pace as the Summer Season Instill Demand

  • 16-May-2024 4:41 PM
  • Journalist: Emilia Jackson

Illinois (US)- The US market has experienced a continual increase in Liquid Carbon Dioxide prices due to higher demand from carbonated drink and beverage manufacturers. Importers from both domestically and internationally have shown heightened interest in Liquid Carbon Dioxide. Global seaborne LNG trade expanded in the first quarter of 2024, with Australia remaining the second-largest exporter. Factors such as production costs and increased demand from carbonated drinks have contributed to the final prices of Liquid Carbon Dioxide. The US dollar reached a multi-week low after the latest non-farm payrolls report revealed a more significant slowdown in job opportunities than expected. Liquid Carbon Dioxide prices at the end of April were witnessed at USD 706 per MT, DEL Illinois in the US market.

The main factor driving demand is the rising demand for containers due to BYD's investment in Brazil (South America). Additionally, tariffs imposed by the US on specific countries have caused a rush to stockpile containers. Experts suggest that a timeline for the reopening of the Port of Baltimore may be established in the next week based on progress in cleaning up the collapsed bridge. The resumption of network services at the Baltimore port for the second-largest global ocean carrier could happen by the end of this month, but this is dependent on the progress of clean-up efforts and the reopening of the channel for large vessels. These factors have limited the export of gas from the US to other countries, leading to higher liquid carbon dioxide prices prices and tight supply in the domestic market.

The demand for liquid carbon dioxide from carbonated drink manufacturers and sellers continued to rise during the quarter. Although sales grew in various international regions, they continued to decrease compared to the previous year in North America. Recently, a sandwich chain in the US market announced a new 10-year agreement with PepsiCo, starting in 2025. As part of this deal, the company will serve Pepsi and other beverages from PepsiCo's range in the United States. These developments are expected to influence liquid carbon dioxide prices in the US market due to heightened demand.

The US government has disclosed plans to allocate funds to enhance the nation's carbon dioxide (CO2) transportation infrastructure. This funding aims to bolster projects that prioritize safe and dependable systems for transporting carbon dioxide, whether for storage or utilization. According to ChemAnalyst, the prices of Liquid Carbon Dioxide are expected to increase in the upcoming quarter as demand and sales for carbonated drinks and other liquid carbon dioxide-infused beverages are expected to rise in the domestic market.

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