For the Quarter Ending March 2025
North America
In Q1 2025, liquid carbon dioxide (CO2) prices in North America exhibited a steady downward trend, largely influenced by declining natural gas prices, a key feedstock in CO2 production. Warmer-than-expected weather forecasts across the U.S. and Europe weakened natural gas demand, reducing production costs and pushing CO2 prices lower through January and March.
Despite stable production rates, market sentiment remained muted as inventory data and energy fluctuations limited price recovery. Tariff-related uncertainties—particularly the 25% U.S. tariff on Canadian imports—posed challenges for cross-border trade, straining the supply chain and injecting caution into procurement strategies. While domestic availability remained sufficient, logistical delays and geopolitical tensions complicated supply dynamics. Demand was relatively stable, supported by consistent consumption in the food and beverage sector, particularly for carbonated drinks.
However, broader industrial demand remained cautious amid economic uncertainties. Investment in CO2 plant upgrades by companies like Messer Americas reflects long-term growth expectations, though short-term pricing remained under pressure. Overall, Q1 was marked by price softness, with a cautious outlook shaped by volatile energy markets and evolving trade policies.
APAC
In Q1 2025, the Asia-Pacific (APAC) liquid carbon dioxide (CO2) market witnessed significant price volatility, shaped primarily by fluctuating natural gas prices and regional supply constraints. January began with price hikes, as rising global LNG costs elevated CO2 production expenses. Beverage producers, especially in emerging markets, faced mounting pressure due to the crucial role of CO2 in carbonation. In February, while natural gas prices temporarily eased, weak downstream heating demand and tariff-related trade tensions—particularly between China and the U.S.—contributed to muted cost support and sluggish export growth. Despite firm supply availability, CO2 prices held steady as demand from the food, beverage, and chemical sectors remained moderate. However, March saw renewed turbulence with natural gas prices spiking due to energy shortages and seasonal demand peaks. Infrastructure limitations, including inadequate gas storage and logistics bottlenecks, further tightened supply, particularly in China. Robust demand from the beverage, healthcare, and manufacturing industries exacerbated the supply-demand imbalance. As a result, CO2 prices in APAC ended the quarter on a higher note, driven by supply chain pressures, strong industrial consumption, and persistent feedstock cost fluctuations.
Europe
In Q1 2025, the European liquid carbon dioxide (CO2) market witnessed a consistent upward price trend, primarily driven by elevated natural gas prices, which serve as a key feedstock in CO2 production. January marked the onset of this bullish momentum as natural gas costs surged, increasing production expenses across the board. Despite these pressures, demand from essential sectors—particularly food and beverage, pharmaceuticals, and welding—remained steady, supporting market stability. February brought further complications, with severe weather events and labor strikes disrupting port operations and tightening supply. Concurrently, rising energy costs and limited storage capacity added to cost support, keeping CO2 prices firm. By March, while the European Commission allowed the natural gas price cap to expire amid improved supply conditions, high gas prices persisted, sustaining upward pressure on CO2 costs. The beverage sector saw robust demand, influenced by urban consumption trends and warmer weather, which boosted electricity use and constrained CO2 feedstock. Overall, Q1 reflected a complex mix of rising production costs, geopolitical tensions, and resilient demand, suggesting a cautiously optimistic but volatile outlook for the European CO2 market moving forward.
For the Quarter Ending December 2024
North America
In Q4 2024, the price trend for Liquid Carbon Dioxide (CO2) in the U.S. experienced an incline, influenced largely by the rise in natural gas prices. This uptick in CO2 production costs was driven by higher natural gas prices, a key raw material for CO2 production. Despite these cost pressures, the market remained stable due to robust demand from sectors such as food and beverage, pharmaceuticals, and welding.
The food and beverage sector, which continued to be the largest consumer of CO2, helped stabilize demand, while industries like pharmaceuticals and chemicals also supported consumption. Despite a weakening manufacturing sector and lower business confidence, there were signs of recovery, especially in industrial activity.
Additionally, the holiday season further buoyed demand, particularly for beverages like soft drinks, which kept CO2 consumption high. Overall, CO2 prices showed an upward trend in response to rising energy costs, but demand remained steady across key industries.
APAC
The Liquid Carbon Dioxide price dynamics in Q4 of 2024 showcased a mixed price trend amidst fluctuating demand outlook and geopolitical issues. With natural gas prices falling during the quarter, production costs for CO2 decreased, contributing to modest price reductions.
Despite these lower prices, demand remained steady, particularly from key sectors such as food and beverage, pharmaceuticals, and welding. The food and beverage industry, which accounted for a significant portion of CO2 consumption, continued to drive demand, especially for carbonated drinks and packaged food preservation.
Additionally, the growing popularity of beverages like bubble tea supported CO2 consumption, particularly in Southeast and East Asia. The food and chemical sectors also contributed to stable demand for CO2. Although consumer preferences shifted towards budget-conscious options, premium beverages, including sodas from Coca-Cola, continued to maintain steady demand, balancing out market challenges.
Europe
In Q4 2024, Liquid Carbon Dioxide (CO2) prices in Europe saw an upward trend, driven by rising natural gas prices, which increased production costs for CO2. Despite these price hikes, demand remained stable due to continued consumption from key sectors such as food and beverage, pharmaceuticals, and welding.
The food and beverage industry, which accounted for a significant share of CO2 usage, continued to lead demand, particularly for carbonated soft drinks and food preservation. Additionally, the pharmaceutical and chemical industries sustained their use of CO2 for processes like supercritical fluid extraction.
Supply chain disruptions in Europe, exacerbated by geopolitical concerns and the holiday season, led to some delays in CO2 production, but demand was bolstered by the festive period.
The growing popularity of bubble tea across Europe further contributed to CO2 consumption, with coffee shops and cafés becoming important drivers. Despite challenges, the overall market outlook remained stable.
For the Quarter Ending September 2024
North America
In Q3 2024, the pricing environment for Liquid Carbon Dioxide in North America witnessed a consistent decrease, with the USA experiencing the most significant price changes. Various factors influenced market prices, including disruptions in the petroleum markets due to hurricanes, impacting crude oil production and refining operations.
The global freight industry also saw a surge in rates, affecting the transportation of goods and leading to higher prices. The demand from carbonated drinks manufacturers and sellers remained moderate, with some companies reporting revenue that exceeded expectations.
In the USA specifically, the pricing trends followed a decreasing sentiment, with prices declining by 1% from the previous quarter. Since over 75% of U.S. gas production came from large inland shale formations, analysts believed that hurricanes were more likely to lower gas prices by reducing demand through power outages and temporarily halting LNG export operations. The plant modernization efforts aimed to boost the supply of molecules within the network and reduce CO2 emissions at the facility, thereby supporting sustainability goals.
APAC
Liquid carbon dioxide prices in the Asian market had continued to follow a declining trend due to falling natural gas prices, which impacted the overall production costs of carbon dioxide. Meanwhile, the demand outlook for carbonated drinks remained moderate and well-balanced, with sufficient inventories to meet the needs of both domestic and international markets. Additionally, the Mid-Autumn Festival and plant shutdowns in the domestic market had influenced the final price quotations of liquid carbon dioxide. In a significant shift, the U.S. had overtaken Qatar as the leading global LNG exporter, facilitated by technological advancements that allowed shale producers to access vast reserves. Both countries were pursuing major LNG expansion projects, solidifying their influence in international markets across Europe and Asia. Global beverage companies had faced slower-than-expected sales growth in China for various reasons. In contrast, Thailand's beverage industry, particularly the carbonated soft drinks segment, had witnessed remarkable growth in product variety, driven by the hot and humid climate. This trend had led key industry players to introduce a diverse range of new brands and flavors, boosting demand from international markets, especially in China.
Europe
Liquid Carbon Dioxide pricing in the Europe region for Q3 2024 experienced a downward trend, particularly in France, where the market saw significant price declines. During the quarter, this was marked by disruptions and plant shutdowns at MOL Petrochemicals Plc in Hungary and Air Liquide in the Netherlands due to force majeure events like floods and power outages. These interruptions impacted the supply chain and contributed to a negative pricing environment. Overall, tightening supplies and reduced demand led to a -1% price change from the previous quarter and a -2% difference between the first and second halves. Northern European terminals faced congestion due to adverse weather, holiday-related port closures, and service disruptions, although major ports like Bremerhaven and Rotterdam continued to perform well. Severe weather conditions at South African ports were expected to delay cargo destined for Europe. An oversupply of naphtha in Europe also led to a significant price drop, affecting commodity production costs. Air Liquide in Rotterdam faced a brief disruption due to a power outage, impacting the supply chain slightly. Market players noted that unfavourable weather and cool temperatures created a challenging start to the final quarter, with beer and wine sales showing only fractional growth.
For the Quarter Ending June 2024
North America
In Q2 2024, the Liquid Carbon Dioxide market in North America experienced a notable increase in prices driven by several critical factors. The most significant influences included robust demand from the carbonated drinks and beverage industries, which surged due to seasonal trends and increased consumer consumption. Additionally, supply chain interruptions exacerbated by global logistics disruptions and higher freight rates added upward pressure on prices. Natural gas price hikes also played a crucial role, as they directly impacted production costs for Liquid Carbon Dioxide.
Focusing on the USA, which saw the most pronounced price changes, the market maintained a bullish sentiment throughout the quarter. The US faced several operational disruptions, including the shutdown of Air Liquide Industrial US LP in Donaldsonville, Louisiana, due to floods. These events constrained supply further, fueling price increases. The overall trend was characterized by consistent upward movements, reflecting a positive pricing environment, despite some fluctuations attributed to weather-related disturbances and logistical challenges.
Seasonality also played a role, with increased temperatures boosting demand for carbonated beverages. There was a 5% increase in prices compared to the previous quarter, indicating a stable yet escalating pricing trend. The first half of the quarter saw slightly lower price increments compared to the second half, recording a 1% difference. By the end of Q2 2024, the price of Liquid Carbon Dioxide DEL Illinois was USD 710/MT, consolidating the quarter's trend of rising prices amidst a constrained supply and heightened demand scenario.
APAC
In Q2 2024, the Liquid Carbon Dioxide (CO2) market in the APAC region exhibited a predominantly positive pricing environment, driven by a confluence of factors. Notable among these were the rising global demand for carbonated beverages and industrial applications, amplified by higher temperatures across the region, which spurred increased consumption. Additionally, supply chain disruptions, including delays and logistical challenges, further tightened the market, contributing to the upward price trend. The inclining prices of liquefied natural gas (LNG), a key feedstock for liquid CO2 production, also played a critical role in elevating production costs and, consequently, market prices. Seasonal spikes in demand associated with summer heatwaves and festivals created additional upward pressure on prices.
Japan experienced the most significant price changes within the region, reflecting a robust demand surge and constrained supply. The quarter showcased a clear trend of price escalation, with notable increases in the latter half driven by intensified consumer demand for beverages and industrial uses. This seasonality effect, coupled with continued supply chain interruptions, underscored the consistent upward trajectory in prices. The percentage change from the previous quarter in 2024 was recorded at 2%, indicating a steady rise. Furthermore, comparing the first and second halves of the quarter, a 2% price increase was observed, reinforcing the trend of escalating prices. The quarter concluded with Liquid CO2 prices in Japan reaching USD 256/MT FOB Tokyo.
Overall, the Q2 2024 pricing landscape for Liquid CO2 in the APAC region was marked by positive sentiment, reflecting strong market fundamentals and external factors driving prices higher.
Europe
The second quarter of 2024 has seen a consistent upward trend in liquid carbon dioxide prices across the European market. This quarter has been marked by a confluence of factors driving prices higher, including robust demand from downstream sectors such as carbonated beverages and food processing. Investment funds have shown heightened confidence in European natural gas, with net-long positions in benchmark Dutch gas futures rising, indicating concerns over tightening supplies despite the onset of summer. Additionally, proposed sanctions on Russia's LNG sector aim to limit the growth of its LNG capacity, further influencing market dynamics. Significant supply chain disruptions, including adverse weather conditions and terminal congestion in Northern Europe, have added to the upward price pressures. Additionally, the oversupply of naphtha has caused a ripple effect on production costs, further influencing liquid CO2 prices.
In Germany, the pricing environment has been particularly dynamic, experiencing the most substantial price changes within the region. The German market has been impacted by a combination of seasonal demand spikes, particularly from the carbonated drinks sector, and supply chain interruptions. The latest quarter-ending price for liquid carbon dioxide in Germany stands at USD 221/MT FD Hamburg, reflecting a 6% increase from the previous quarter.
The first half of the quarter witnessed a 4% price rise compared to the second half, underscoring the consistent upward momentum. Plant shutdowns and operational halts, such as those experienced at major production units, have further exacerbated supply constraints. The overall trend indicates a bullish market sentiment driven by firm demand, limited inventories, and increased production costs, contributing to a positive pricing environment for liquid CO2 in Germany for Q2 2024.
