SME Industry "Severe Carbon Dioxide Shortage... Government and Industry Must Develop Countermeasures"

Supply Shortage Due to Petrochemical Plant Maintenance
Dry Ice Demand Rises, Causing Supply Instability
"Storage Tank Inventory Likely to Run Out... Worst-Case Scenario"

[Asia Economy Reporter Kim Bo-kyung] Domestic operations are expected to suffer due to a shortage of carbon dioxide and price increases. The small and medium-sized carbon dioxide industry is urging countermeasures such as changes to the plant maintenance schedules of large corporate suppliers.

According to the Korea High Pressure Gas Industry Cooperative Federation on the 13th, a shortage of carbon dioxide supply is occurring as petrochemical plants in Ulsan, Seosan, Yeoju, and Naju have recently entered maintenance one after another.

Due to high oil prices, petrochemical companies have undertaken plant maintenance from March to June, significantly reducing the amount of carbon dioxide produced as a byproduct. Additionally, the increased demand for dry ice due to fresh food delivery services has caused instability in the supply of raw carbon dioxide.

Carbon dioxide is used importantly not only in carbonated beverages but also in various industrial sectors such as semiconductors, steel, shipbuilding, medical, and wastewater treatment. Domestic carbon dioxide manufacturers include Taekyung Chemical, Seondo Chemical, Changshin Chemical, Dongkwang Chemical, and SK Materials Renewtech.

The industry estimates the total domestic carbon dioxide production capacity at 2,740 tons per day, or approximately 83,000 tons per month. Due to successive maintenance by raw carbon dioxide suppliers, the decrease in carbon dioxide supply is predicted to be 24,470 tons in May and 15,430 tons in June.

An industry official stated, "Currently, no carbon dioxide manufacturer is able to properly ship carbon dioxide," adding, "Inventory in storage tanks is expected to be depleted, forecasting the worst situation in history."

Carbon dioxide is mainly produced as a byproduct during the manufacturing process of petroleum refining and petrochemical products. Carbon dioxide manufacturers receive raw carbon dioxide from petrochemical companies, refine and liquefy it, and supply it to filling companies and large-scale demand companies.

Carbon dioxide prices are also soaring. Prices have more than doubled in the two years since the outbreak of COVID-19. A representative from a carbon dioxide manufacturer in the Seoul metropolitan area explained, "Due to the surge in diesel prices, transportation costs have greatly increased, making it unavoidable to raise carbon dioxide prices," adding, "The impact of COVID-19 has caused significant price increases in various raw materials such as high-pressure containers and valves, making price hikes inevitable."

Shim Seung-il, chairman of the Korea High Pressure Gas Industry Cooperative Federation, emphasized, "It is necessary to adjust the maintenance schedules of petrochemical companies planning plant maintenance in May and June and to make efforts to protect the industry, such as refraining from using dry ice," adding, "The government and industry must come forward quickly to prepare countermeasures."

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