R22 tight production quota push prices upward slightly optimistic about next year Quotes

Due to rising raw material prices, production quotas tightening and other factors, the recent R22 refrigerant prices rose

slightly, the manufacturer gave traders also fewer concessions, analysts agree that the second half of R22 to maintain the current

13,700 yuan / ton price level is no problem, as the shut down of production capacity next year, the market supply is reduced, R22

prices will continue upward.

According to the business community branch refrigerant chemical analyst Gao Zhai said that the current R22 manufacturers offer at

14,000 yuan / ton, the actual transaction price 13,700 yuan / ton, compared with prices in late August, up about 3%. He said the

reason is that the rise in prices of raw materials prices and chloroform tense due to quota factory operating rate fell, “like

Dongyue Group’s current operating rate is only about 50%.”

“The second half, it is estimated that the price is now, because the downstream demand is not good, the possibility of R22

continue to rise sharply, to officially begin production next year out, the price will continue to rise.” Gao Zhai said.

Zhuo record information refrigerant analyst Xu Yanbin said, from the current situation, the production quota to November will be

very tight, to December could basically run out of words. But because the current R22 at high prices, so the market is mainly

dependent on the second half of October after the downstream market, if the downstream demand is good, then the price or may also

rise. In addition, he is more optimistic about the same price next year’s R22.

On the 16th, the ministry held in Beijing in 2014 the International Ozone Layer Protection Day celebrations, and published the

first batch of Chinese HCFCs (HCFCs) production line shut down enterprises list items. The first batch of a total of five

companies closed five HCFCs production line, out of HCFCs production quotas totaling 58,864 tons, corresponding HCFCs production

capacity of 88,000 tons / year. Five companies, Jiangsu Blue Planet Environmental Science and Technology Co., Ltd., Hangzhou FTSE

Chemical Co., Ltd., Yantai Swiss Chemical Co. all off HCFC-141b production line, a total amount of 25,627 tons out of production

quotas; Ying Peng Chemical Co., Ltd. and Zhejiang Dongyang Chemical Co., Ltd. were off an HCFC-22 (R22) production line, the

amount of 33,237 tons out of production quotas.

According to the requirements of Article 19 Conference of the Parties “Montreal Protocol” No. 6 of the resolution, China needs in

2013 will HCFC production and consumption freeze in 2009-2010 the average level of 2015 level of 10 freeze-out %, in 2020

eliminated 35 percent, eliminated 67.5% in 2025, to 2030 HCFC phase-out of all manufacturing production and consumption. HCFC

phase out mainly around R22, R141b and R142b launched three products.(Related: chemicals)