Quarterly Update on Global Liquid Carbon Dioxide Market
For the Quarter Ending June 2021
The domestic dry Ice segment of USA remained the centre for most of the demand in this quarter again. The dry ice segment was primarily driven by demand for refrigeration of vaccines, as the vaccination drive picked up a tremendous pace in April. US vaccination drive was deemed as one of the fastest in the meantime, which increased the overall demand for Liquid Carbon Dioxide in the country. However, manufacturers already anticipated the present demand and ramped up their production level to restrain from any shortage. Therefore, under the firm availability prices remained steady throughout the quarter.
Demand for Liquid Carbon Dioxide remained firm in APAC region during this quarter, bolstered by strong offtakes from refrigeration sector. In China, prices fluctuated throughout the quarter, where overall rise was observed in the prices, as the demand from dry ice segment remained very high. most of the Asian countries ramped up their vaccination rate to curb infection. India witnessed huge demand for vaccines, while supply remained tight under second wave of pandemic in the country. Therefore, after witnessing overall rise in price of Carbon Dioxide, the average price hovered around USD 182.5/MT and USD 194.3/MT in China and India respectively during the month of May.
During this quarter, major European economies also increased their inoculation rate to curb further wave of pandemic. In the meantime, Europe started lifting restrictions, and enhancing vaccination rate, which eventually increased the demand for Liquid Carbon Dioxide from the dry ice segment. However, prices remained sturdy and marginal fluctuation was observed in the price of Liquid Carbon Dioxide during this quarter across the region. In addition, vaccination drive again gathered pace during the month of June, after a significant fall in pandemic cases.
For the Quarter Ending March 2021
Global demand for Liquid Carbon Dioxide was majorly driven by the dry ice sector, as it was widely required for the vaccination drive running across the region. Since Q4 2021, demand for Liquid Carbon Dioxide from dry ice market rose drastically and was already 10 times high with respect to the same quarter in the previous year. Some of the major manufacturers remained confident about their production rate and sufficient stock availability to satisfy the demand coming from domestic and international market. In line with the consistent demand, prices showed nearly double digits improvement across USA and Canada.
The Asian market showed a steady growth in demand for Liquid Carbon Dioxide from dry ice sector during Q1 2021. India prepared itself for the vaccination drive during January, thus later in February demand rose sharply and hence the prices of Liquid Carbon Dioxide skyrocketed. In the Chinese market abundant availability amidst high demand supported the prices to reach USD 202 per MT till March, while in Indian market it reached USD 170.7 per MT, with an increment by 21% since January. Rapid vaccination drive is expected to extend till the forthcoming quarter hence the prices of Liquid Carbon Dioxide are likely to witness further increment.
After the second wave of Covid 19, Europe started the rapid vaccination drive to reduce the chances of another wave in future. While allegedly vaccination drive wasn’t very active and rapid, and lack of coordination between departments were also observed in some European countries. Although these problems settled down soon and demand for Liquid Carbon Dioxide from dry ice sector for vaccination increased rapidly. However, the demand was consistently high since last quarter, thus the prices gain a significant value during this timeframe.
For the Quarter Ending December 2020
Soaring demand for dry ice to store the upcoming coronavirus vaccines kept consumption of Liquid Carbon Dioxide higher in the quarter ending December. Shortage of container due to logistic disruptions caused by the coronavirus outbreak added to the supply crises across the globe. China reported a steep increment in orders from the US and Europe for dry ice and its related equipment for February and March 2021. As per the industry experts, with the launch of new vaccines, the demand for Liquid Carbon Dioxide is expected to reach record highs in the year 2021. Showcasing the positive inclination of demand, price of food grade Liquid Carbon Dioxide was averaged around USD 125 per MT in India for the quarter ending December 2020.
US Liquid Carbon Dioxide market remained concerned over supplies of the material from Asia and Europe amidst expected increment in demand for dry ice for the storage of Covid-19 vaccines. However, several companies seemed optimistic that altogether there is enough dry ice supply available to cater to the perceived demand. Reliant and Airgas, two of the renowned Carbon Dioxide manufacturers in the US seemed well prepared to cope with the upcoming surge in demand as the cases continue to escalate. Since most of the demand for Carbon dioxide is captured through Ammonia and Ethanol production plants, weak demand for fuel Ethanol accompanied by crimpled prices of Ammonia have forced turnaround in some of the US’ CO2 production unit since November.
As nearly 90 percent of the demand for Liquid Carbon Dioxide in UK is primarily catered via imports from Europe, stocks of the product are likely to diminish rapidly as Pfizer is heard of bulk sourcing the product to produce dry ice at its German plant. Although the region is preparing for the mass production of Liquid Carbon Dioxide, bulk consumption of the product at Pfizer’s Belgium or Germany plant is likely to leave UK markets short of the imports.