Refrigerant in crisis: prices soaring but short of supply

2017-05-19 15:32:08 admin 103

In April, the refrigerants price hikes into crazy, take the R125 for example, rise 30000-40000 yuan/ton a month. In the middle of April, the market is seriously out of stock, the stock of R125 & R32 are not enough, having a price but no sales, the majority of 80% refrigerant manufacturers suspend the offer due to no stock .

By the end of April, HCFC-22 EXW price is about 17000-17500yuan/ton, monthly rises about 2500-2700yuan/ton; HFC-134a EXW price is about 30000-32000yuan/ton, and the hot demand of heat pump helps to drive the price rising. HFC-125 suspend the offer at the end of the month, the main reason is that no products supplying in the market, even though occasional manufacturers offer 6-8.5 million yuan/ ton, a small amount of transactions; HFC-32 increases from 22000 -23000yuan/ton to 30000-31000 yuan /ton, an increase of 42%; HFC-410A EXW price is about 5.5-6.0 million yuan/ton, a largest increase within a month with tight supply.

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No goods, no goods, no goods, why?

AHF meets a periodic maintenance, raw material supply is extremely tense!

In April, most of AHF manufacturers carry out periodic maintenance, meanwhile with frequent safety & environmental protection supervision, and the arrival of the rainy season, all of which lead to the over-demand of refrigerants.

According to ChinaIOL, up to the end of April, AHF EXW price (RMB/t) is as following: from Fujian province: 11800-12000; from Jiangxi province: 11600-11800; from Zhejiang province: 11600-12000; from Inner Mongolia province: 11600. The estimated supply situation in May will still be tension.

Frequent environmental supervision, acid enterprises encounter halt production.

On 5th April, the ministry of environmental protection held a video meeting in Beijing, decided to launch a one-year strengthened supervision over the Beijing-Tianjin-Hebei and the surrounding channel "2 +26" cities. The Ministry of environmental protection deployed 5600 environmental law enforcement officers from the country to carry out inspections in following aspects: fixed pollution of environmental protection facilities operation and discharge standards; "Scattered chaos" enterprise investigation; Implementation of limited production measures, etc.

Because of the serious inspection of environmental protection, many small hydrochloric acid enterprises have to shut down which also affect refrigerant’s production to a certain extent.

Air conditioning hot season production will continue.

According to the monitoring data by ChinaIOL, in March 2017, household air-conditioning production is 14.268 million units, an increase of 32.6%, sales of 1484.88 million units, an increase of 24.9%, of which domestic sales is 754.05 million units, an increase of 39.7%, exports of 7,308,300 units, an increase of 12.6% year on year . it is obviously seen that the terminal air conditioning market is under a hot season.

By the end of March, the entire air conditioning industry total inventory exceeded 40 million units, which is much higher than the same level.

In a word, in May, the refrigerant supply will still be tight, some products will remain out of stock, the refrigerant price will keep a high increase…