Refrigerant Gas Price: Rushed High and Fell Down, 2022 is expected to rise

From September 15, 2021, the Kigali Amendment officially took effect for China, which means that China’s third-generation refrigerants (HFCs) will officially begin to be bound by the Kigali Amendment, except for projects that have already been approved. 

The third-generation refrigerant will no longer have new capacity, and with the end of the 2022 baseline, the production and sales of the third-generation refrigerant will also be strictly controlled and tightened. Although from the perspective of price and spread performance, in the fourth quarter, as the downstream domestic demand and external supply of refrigerants weakened, the price of raw materials fell from a high level and the cost side lost support, resulting in a significant phased drop in refrigerant prices and spreads. 

It is expected that the subsequent refrigerant prices will not return to the low level during the current round of price wars.