High Pressure Gas Association "Carbon Dioxide Price Increase Inevitable"... Supply Shortage Due to COVID-19

Source=Korea High Pressure Gas Industry Cooperative Federation

[Asia Economy Reporter Kim Daeseop] The Korea High-Pressure Gas Industry Cooperative Federation announced on the 25th that a price increase is inevitable due to a shortage in the supply of carbon dioxide gas, the main raw material for carbonated beverages.

According to the federation, the amount of raw carbon dioxide, a byproduct generated during the manufacturing process of petroleum and petrochemical products, is decreasing. The federation explained that this is due to a significant drop in the operating rates of these factories caused by the sharp decline in demand and supply of petrochemical products amid the prolonged global economic recession triggered by the COVID-19 pandemic.

In particular, the federation claimed that the demand for dry ice has increased rapidly due to the surge in fresh food deliveries through non-face-to-face online shopping, and the supply of carbon dioxide, the raw material for carbonated beverages, cannot keep up with the sharp increase in consumption during the summer, causing supply prices to rise. Carbon dioxide gas is used not only in carbonated beverages but also in various industrial sectors such as semiconductors, steel, paper manufacturing, medical, and wastewater treatment. Dry ice is made from liquid carbon dioxide.

Shim Seung-il, chairman of the High-Pressure Gas Industry Cooperative Federation, said, "Carbon dioxide is very important not only in everyday life but also across industries, so this shortage causes damage not only to suppliers but also to end users," adding, "Since it is feared that this will ultimately have a negative impact on the entire industry, efforts to overcome these difficulties together through cooperation between carbon dioxide manufacturers and filling companies are necessary."

This content was produced with the assistance of AI translation services.