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Refrigerant prices rose sharply in December

Views:24     Author:Site Editor     Publish Time: 2020-12-31      Origin:Site

Refrigerant prices rose sharply in December

Since December, the price of refrigerants has risen sharply, mainly caused by the price increase of upstream raw materials combined with tight spot and increased downstream demand.



01

Rising raw materials drive the refrigerant industry chain

In the upstream, the price of main raw materials has risen significantly, and the cost support is strong. The domestic price of anhydrous hydrofluoric acid rose sharply in December. As of the end of the month, the average market price of hydrofluoric acid was 9,500 yuan/ton, up 15% from November, and the spot supply was slightly tight.

Refrigerant Gas Raw Material Hydrofluoric Acid Price Chart

Fluorite is the upstream raw material of hydrofluoric acid, and it affects the price of hydrofluoric acid. Recently, some devices have been shut down, the spot supply is tight, and the price of fluorite is rising. Data show that since mid-December, the price of fluorite has increased significantly. The latest average price is 2750 yuan/ton, an increase of nearly 6% from the beginning of the month. Also, due to environmental protection policies, some factories have been closed, resulting in tight supply in the market.

Refrigerant Gas Raw Material Fluorite Price Chart

Other raw materials have also skyrocketed. Statistics from refrigeration gas stations show that dichloromethane has risen from 2200 yuan/ton in September to 3,500 yuan/ton, an increase of 60%; trichloromethane has risen from 1,800 yuan/ton to 3,600 yuan/ton in September , An increase of 100%; in the past half month, the price of sulfuric acid has risen by nearly 7%, but even so, there is still a 40% increase in the average price of the past four years.


Industry insiders believe that the price of upstream fluorite has risen, and the price of hydrofluoric acid has risen steadily.


02

The supply of goods is tightening, the main price is rising rapidly

Raw materials have skyrocketed, and the prices of finished refrigerants have continued to rise. Refrigerant gas station data show that since the end of November, R134a has risen from 15,000 yuan/ton to 20,000 yuan/ton, an increase of nearly 35%; R410A has risen from 12,500 yuan/ton to 195,000 yuan/ton, an increase of nearly 60%; R125 is even more From 15,000 yuan/ton to 28,000 yuan/ton, an increase of nearly 90%.

Refrigerant Gas R134A Price Chart

It is mentioned that the reason for the price fluctuation of refrigerants is the rise of raw materials. Perhaps many friends think it is too abstract. Let’s first take a look at the consumption of raw materials required for the production of common refrigerants:


Each production of 1 ton of R22 needs to consume 0.5 tons of hydrofluoric acid + 1.5 tons of chloroform,


Every 1 ton of R32 needs to consume 0.8 tons of hydrofluoric acid + 1.8 tons of methylene chloride


Every 1 ton of R125 needs to consume 0.95 tons of hydrofluoric acid + 1.5 tons of tetrachloroethylene


Every 1 ton of R134a needs to consume 0.88 tons of hydrofluoric acid + 1.35 tons of trichloroethylene


......


Of course, please note that these are only the cost of raw materials required for the production of refrigerants, and do not include equipment losses, electricity costs, labor and other production expenses. For the common finished products packaged in disposable steel cylinders of about 10KG, the filling loss and costs, cylinder and packaging costs, labor and transportation costs, etc. should also be included.


After reading these data, do you still think that raw material fluctuations have no effect on the refrigerant?


03

Increase in demand, market prices may continue to rise


From the perspective of demand, due to the impact of the epidemic, the demand for cold chain equipment has increased sharply, and orders are currently skyrocketing, and orders for some factories have been placed in the middle of next year. At the same time, overseas supply of refrigeration equipment is facing challenges. Cold chain factories in various countries are slow to resume production. Now global orders are continuously concentrated in China. In particular, the demand for industrial and automotive refrigeration represented by R507 and R134a has increased sharply. The area is out of stock.


As prices rise, the market has strong bullish sentiment, and individual models of refrigerants have been reluctant to sell. In the later stage, the prices of 4 series refrigerants may continue to rise. At the same time, with the release of new production quotas in 2021, the tight supply of R22 refrigerant in the market will be greatly eased. If factories increase production, market demand will not meet expectations, and the R22 market may have certain downside risks in the short term.

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