Carbon dioxide

Liquid Carbon Dioxide Market Intelligence Report – Recent Dynamics

I. Price Trends
1. National Overview: As of May 26, 2026, the national spot average price for liquid carbon dioxide stood at RMB 239 per ton, unchanged from the previous day; it rose by RMB 34/ton (16.59%) over the past week and by RMB 72.5/ton (43.54%) over the past month.
2. Regional Market Conditions:
– Hebei Region: Spot price on May 26 was RMB 250/ton, down RMB 5/ton (1.96%) from the prior day; weekly change was flat (0.00%); monthly increase amounted to RMB 15/ton (6.38%).
– Jiangsu Region: Spot price on May 24 was RMB 290/ton, unchanged from the prior day; weekly increase was RMB 35/ton (13.73%); monthly increase was RMB 45/ton (18.37%).

II. Supply-Demand Dynamics
1. Supply Side:
– Leading enterprises are strengthening competitive barriers through vertical integration. For instance, Hunan Kemate Gas leverages its two CO? recovery and liquefaction bases in Yueyang and Huizhou, achieving a liquid CO? production capacity of 420,000 tons/year in 2025—accounting for approximately 11% of China’s total capacity. Hangzhou Oxygen Plant Co., Ltd. capitalizes on its expertise in air separation equipment manufacturing to expand its liquid CO? filling station network; by 2025, it had established 23 regional distribution centers covering East and North China.
– China’s national liquid CO? output exceeded 11.214 million tons in 2025. Among industrial-scale CO? capture facilities newly commissioned in 2026, ~35% are equipped with integrated liquefaction and storage infrastructure, directly boosting demand for liquid-form delivery by ~42,000 tons/year.
2. Demand Side:
– Electronics Specialty Gases: Annual demand growth for ultra-high-purity (≥5N) liquid CO? reaches 23.6%, primarily driven by expansion projects at Yangtze Memory Technologies (YMTC), CXMT’s Phase II, and Hefei Jinghe Integrated Circuit’s mass production of its 28nm fabrication line.
– Cold Chain Logistics: Pilot programs for novel dry-ice-based temperature-controlled packaging have been deployed across 17 key nodes—including JD Logistics’ North China Hub and SF Express’ East China Cold Chain Center. Commercial rollout in 2026 is expected to generate ~RMB 380 million in incremental market value.
– Environmental Applications: Liquid CO? consumption in CCUS (Carbon Capture, Utilization, and Storage) demonstration projects reached 368,000 tons, up 33.7% year-on-year, making it the second-highest-growth segment after the electronics industry.

III. Policy Impacts
1. National-Level Policies:
– The Ministry of Ecology and Environment, jointly with the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT), issued the “Implementation Plan for Industrial Sector Carbon Peak (2025 Interim Evaluation and Deepened Promotion Notice)”, explicitly designating high-purity industrial liquid CO? as a key low-carbon process alternative medium and a critical foundational raw material for CCUS industrial chains. It mandates pilot promotion of liquid CO? to replace conventional coolants and inert shielding gases across eight high-emission sectors—including iron & steel, electrolytic aluminum, and synthetic ammonia—with a targeted coverage rate of 32.6%. A dedicated technological upgrade subsidy program has been introduced, raising the maximum per-project subsidy to RMB 8 million.
– The Ministry of Finance released the “Preferential Income Tax Catalogue for Resource Comprehensive Utilization Enterprises (2025 Revised Edition)”, formally incorporating the industrial liquid CO? recovery and purification segment into the preferential tax policy allowing 90% of related revenue to be counted toward taxable income. This is projected to reduce enterprise tax burdens by ~RMB 1.27 billion annually.
– The NDRC’s “Green and Low-Carbon Advanced Technology Demonstration Project Implementation Plan” provides subsidies of up to RMB 300 per ton for the liquefaction segment of CCUS projects.
2. Local-Level Policies:
– Jiangsu, Shandong, Inner Mongolia, and Guangdong provinces (autonomous regions) have each launched three-year development action plans for the liquid CO? industry, collectively allocating RMB 4.38 billion in special fiscal funds: Jiangsu (RMB 1.52 billion), Shandong (RMB 1.21 billion), Inner Mongolia (RMB 0.93 billion), and Guangdong (RMB 0.72 billion). These initiatives are expected to add a total of 1.86 million tons of new liquid CO? capacity in 2025.

Analysis & Assessment
1. Drivers of Price Volatility:
– Recent price increases are primarily attributable to supply-demand imbalances. On the supply side, capacity expansions by leading enterprises and CCUS project-related infrastructure development are stimulating demand. On the demand side, robust growth in electronics specialty gases, cold chain logistics, and environmental applications is propelling upward price pressure.
– Regional price differentials mainly reflect transportation costs, local supply-demand equilibrium, and provincial policy incentives. For example, Jiangsu’s relatively high prices likely stem from strong local demand in electronics specialty gases and cold chain logistics; Hebei’s greater price volatility may reflect dynamic adjustments in local supply-demand balance and fluctuations in logistics costs.
2. Policy-Driven Effects:
– Enhanced national and provincial policy support—including subsidies and tax incentives—is lowering operational costs for enterprises and accelerating technological upgrading and capacity expansion across the sector.
– CCUS infrastructure deployment and rising environmental application demand are generating new growth engines, steering the industry toward higher value-added, customized product offerings.

Outlook
1. Price Trends:
– In the short term, liquid CO? prices are likely to remain elevated, with narrowing volatility due to sustained supply-demand tightness and supportive policy frameworks.
– Over the longer term, expanding industry capacity and gradual supply-demand rebalancing may lead to price stabilization; however, premium-grade products—supported by technological barriers and resilient high-end demand—are expected to maintain relatively higher pricing levels.
2. Market Size:
– The 2026 market size is projected to reach RMB 16.07 billion, representing a 7.1% year-on-year growth. Key growth drivers include volume ramp-up of electronic-grade products, scaled deployment of CCUS projects, and expanded adoption in cold chain logistics.
– Industry concentration is expected to further increase, as leading enterprises consolidate their positions through technology upgrades and integrated service solutions—while SMEs may face intensifying competitive pressures.
3. Technological Development:
– Purification and storage/transportation technologies for ultra-high-purity liquid CO? will continue to advance, reducing production costs and enhancing supply chain efficiency.
– Rising purity requirements in electronics specialty gases and environmental applications will accelerate industry-wide technological upgrading and product premiumization.