The Global Core Factory for Refrigerant R134A Has Suspended Production Due To Force Majeure.

This article covers: 

(1) The supply of refrigerant R134A is insufficient, and its price continues to rise, with an imminent increase of 11%; 

(2) Unexpected events, such as the force majeure shutdown of core global R134A manufacturers, have further reduced supply; 

(3) The underlying logic behind the continuous rise in refrigerant prices; 

(4) The potential for R134A price increases; 

I. The supply of refrigerant R134A is insufficient, leading to a continuous rise in price, with an imminent increase of 11%.

1. Since the implementation of the refrigerant quota system in China in 2024, the supply of refrigerant R134A has been insufficient, and its price has continued to rise. From approximately RMB 27,000/ton at the end of 2013 to the current RMB 55,000/ton, the price has more than doubled and continues to rise.

2. In addition, the price of R134A abroad has been rising continuously in recent years, with an increase of 200%-500% in the past three years. Among them, Europe and the United States have seen the most dramatic increases. This indicates that R134A is already in short supply abroad.

II. Unexpected Events: Force Majeure Production Shutdown at R134A's Global Core Manufacturer Further Reduces Supply

1. Safety Accident, Force Majeure Production Shutdown

Recently, a force majeure production shutdown occurred at R134A's global core manufacturer (Ornia, formerly the Koura plant of Mexicochem in the United States). (This accident resulted in one death; it's worth noting that developed countries in Europe and America have zero tolerance for chemical safety accidents.) Following this, the demand for R134A will further increase.

2. Production Scale of the Company Involved in the Incident: 

The production scale of R134A produced by the company involved in this force majeure shutdown, Mexichem in the United States, is not accurately available online, but it is certainly a core global manufacturer of R134A.

In general, global production of refrigerant R134A in 2024 was approximately 650,000 tons (since production is quota-based, refrigerant production must be considered in terms of both output and quotas; capacity data is not valid). The company involved in the accident, Mexichem, produced approximately 65,000 tons per year in 2024, accounting for about 10% of the global total.