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With the skyrocketing refrigerant prices, what should the air-conditioning industry do?

by:Arkool     2021-03-22

The price of refrigerants is rising

The refrigerant is the medium through which energy conversion is completed in various heat engines. It is the main product in the organic fluorine industry chain and an important part of the entire fluorine chemical industry chain. At present, there are four main varieties of fluorine refrigerants in my country, namely R22, R134a, R125 and R32. R134a is mainly used in automobile air conditioners, household air conditioners, central air conditioners, refrigerators, cold storage and industrial and commercial refrigeration. At present, the prices of several major refrigerants on the Chinese market have generally risen by more than 50% over September. Especially R32, the increase is as high as 76%.

Reasons for the rise in refrigerants

Since the beginning of this year, the sales of air conditioners as downstream products have been booming, and the demand for refrigerants has been strong, which has driven the prices of refrigerants to rise. In addition, due to the government's strengthening of environmental protection supervision and the increase in transportation costs, the production and transportation of refrigerants have been affected, which has exacerbated the tight supply in the market. The air-conditioning industry experienced a large-scale restocking in the first half of this year. Due to better sales and faster destocking, the current inventory level is still at a low level, which will also promote subsequent air-conditioning production and refrigerant demand. Moreover, due to the recent withdrawal of outdated production capacity, the operating rate of hydrofluoric acid manufacturers is not high, resulting in a shortage of domestic supply of hydrofluoric acid, some manufacturers have no stock, and the market price of hydrofluoric acid has risen sharply. The decrease in the supply of refrigerant raw materials such as fluorite and hydrofluoric acid has also led to insufficient supply of refrigerants in the market and rising prices. In 2017, the price of fluorite rose by 78.20% year-on-year, and the market price of hydrofluoric acid was also extremely hot, with a year-on-year increase of 94.37%.

The phenomenon of rising refrigerants also appears in the European market

Similar to the Chinese market, Europe is also due to the implementation of the EU Fluorine Gas Act (F-Gas Act). Experienced the skyrocketing refrigerant prices. In 2018, the EU HFCs refrigerant quota will be reduced from the baseline level of 93% to 63%, while the European refrigerant prices are expected to continue to rise under the influence of the EU F-Gas Act.

The future development trend of my country's air-conditioning industry

Currently, the world is accelerating the elimination of ozone-depleting substances under the framework of the Montreal Protocol. According to the requirements of the protocol, my country needs to reduce the consumption of HCFC refrigerant R22 by 35% from the baseline level by 2020, and completely eliminate it by 2030, leaving only a small amount to meet the needs of maintenance purposes. This means that HFCs refrigerants will be gradually reduced. It is expected that my country's air-conditioning industry will cross the development stage of semi-environmental-friendly refrigerants such as R410A and R32 and move directly to the stage of R290. At present, my country’s air-conditioning industry has clarified the use of low-carbon and environmentally friendly hydrocarbon working fluid R290 as a refrigerant alternative route. The entire industry has completed the transformation of 19 290 air conditioner production lines and 4 R290 compressor production lines in the first phase of compliance. Increased the production capacity of R290 air conditioners.

In March 2017, my country's room air conditioner and domestic heat pump water heater industry phase 2 HCFC phase-out work was officially launched. In the second stage, my country's room air conditioner and domestic heat pump water heater industry will transform at least 20 R290 room air conditioner production lines, 3 R290 domestic heat pump production lines, 2 CO2 (R744) domestic heat pump production lines and 3 R290 compressor production lines.


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