Prices of Third-generation Refrigerants Rise

Recently, the Ministry of Ecology and Environment issued the "2024 Total HFC Quota Setting and Allocation Plan" (hereinafter referred to as the "Plan"), which clarified the total domestic HFCs production, import, and internal production quotas and enterprise quota allocation next year. plans, etc. Affected by factors such as the approaching quota period and the intensive replenishment of inventories by overseas companies in the fourth quarter, it is expected that the prosperity of the refrigerant industry may increase significantly.

Prices of third-generation refrigerants rise

Data shows that on November 22, the prices of HFCs and related mixed refrigerants have increased. R32 is quoted at 16,500-17,500 yuan/ton, R125 is quoted at 27,000-29,000 yuan/ton, R410a is quoted at 21,000-21,500 yuan/ton, and R143a is quoted at 21,000-21,500 yuan/ton. The quotation price is 26,000-28,000 yuan/ton, R507 price is 26,000-28,000 yuan/ton, and R404 price is 26,000-28,000 yuan/ton, which increased by 3.13%, 3.85%, 5%, 13.04%, 13.04%, respectively from the previous day. 13.04%; compared with November 1, they increased by 3.13%, 7.69%, 5.00%, 44.44%, 23.81%, and 26.83% respectively.

On the one hand, the industry chain is bullish on the price of refrigerants next year, prompting the industry chain to stock up. From 2020 to 2022, refrigerant manufacturers are racing to secure more production quotas. According to data from the Ministry of Ecology and Environment, the average utilization rate of my country's HFCs devices in 2020 is only 48.2%, indicating serious overcapacity. In 2024, HFCs will officially enter the era of quota production, and excess production capacity will be cleared with certainty. With the expectation that the supply and demand balance sheet and operating rate will continue to improve, the industrial chain has begun to stock up in advance.