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Coronavirus crisis directly led to soar in carbon dioxide price

Coronavirus crisis directly led to soar in carbon dioxide price

The Korean high-pressure gas market has been suffering from an untimely shortage of carbon dioxide supply since March, reports Korea Gasnewspaper.

This supply and demand disruption is attributed to coronavirus as the biggest reason, although the impact of the explosion at Lotte Chemical’s Daesan Plant is also not without impact.

As carbon dioxide (CO2) is mainly obtained from the manufacturing process of petroleum and petrochemical products, its supply and demand is greatly affected according to the operation rate of oil refining and petrochemical companies.

The problem is that international oil prices have begun to drop sharply since February with the spread of coronavirus in Korea and around the world, and demand for oil and petrochemical products has also been plummeting, which led to the suspension of plant operations or significantly lower utilisation rates. The biggest reason why petrochemical companies have entered into overhauls one after another is that they have reduced the amount of raw carbon dioxide.

Moreover, as the number of non-face-to-face shopping grows significantly in households due to coronavirus, and the number of cases of food by delivery service increases, these trends made the demand for dry ice (D/I) soar up and have also contributed to the shortage of supply of raw carbon dioxide.

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