CO2 market floats signs of optimism; producers are raising prices and making capital investments after years of oversupply.(Carbon dioxide)

Chemical Market Reporter, April, 1997 by Johnson, Dexter

Producers are raising prices and making capital investments after years of oversupply. CARBON DIOXIDE IS ON THE RISE. In response to market strength and [CO.sub.2]'s usual summer demand peak, one producer is seeking a price increase, and another is showing confidence in the market by investing in a major expansion.

The [CO.sub.2] market has enjoyed strengthening prices since 1995, when supply and demand fell into balance after years of oversupply. In recent months, the market has grown increasingly tight as demand has continued to grow without corresponding supply growth. The summer demand increase, driven by beverage carbonation, frozen food and dry ice used in transportation, only exacerbates matters. Other applications for the estimated $2...

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