Carbon monoxide commercially is manufactured from gasification of coal or partial combustion of hydrocarbon, which is derived from natural gas. Carbon monoxide is one of the leading greenhouse gases that are not preferred to be used on a large scale. Despite its drawbacks, the market for carbon monoxide in Europe is still active. The upstream products are in the high price range globally due to the disrupted trading of oil and gas caused by the ongoing war between Russia and Ukraine. The war is taking a heavy toll on the European market, thus providing higher chances of increased carbon monoxide prices as Europe is the highest consumer of carbon monoxide. The downstream home improvement industry in Europe during the first quarter of 2022 was booming, further abetting the rise of carbon monoxide demand in the European market.

For the upstream products (Coal and natural gas), the market of both in Europe had a bullish trend from the beginning of the year. The German government tried to regulate the LNG prices in a bid to expand coal imports from the North African region. Colder countries like Netherlands and Denmark suffer from greater carbon monoxide prices than other countries due to their high demand owing to their use in industrial and domestic heating. The energy crisis and a ban on import of Russian coal led to higher upstream coal values contributing to the upward trend of carbon monoxide prices in the European market.

As per ChemAnalyst, the carbon monoxide prices are impacted and influenced heavily by the upstream coal or natural gas instead of demand from the downstream industries. So, the market for carbon monoxide is highly volatile in Europe, reflecting the market trend for coal and natural gas. The volatility in the carbon monoxide market is expected to persist at least till the end of the quarter ending June.