Supply Balance Demand Rising, Refrigerant Industry Warming

Instead of the three-year “quota battle”, the refrigerant industry will finally usher in the “spring”.
According to the monitoring data of Bachuan Yingfu, from 13,300 yuan per ton at the beginning of this year to more than 14,300 yuan per ton on February 22, since 2023, the mainstream third generation refrigerant R32 rose by more than 10%. In addition, many other models of the third generation of refrigerant prices have increased to varying degrees.

Recently, several senior executives of listed fluorine chemical companies told Shanghai Securities News that the refrigerant industry is expected to see a turnaround in 2023, and with the economic recovery and the continuous expansion of downstream application scenarios, the refrigerant market demand is expected to continue to improve in the next few years.
Capital Securities said in the latest research report, the third generation of refrigerant base period is expected to end in 2023, the industry is expected to usher in price spread repair, bottoming out rebound, at the same time, the third generation of refrigerant quota to the industry leader concentrated. Combined with the continuous reduction of the quota of the second generation refrigerant and the high cost and limited application of the fourth generation refrigerant, the competition pattern of the third generation refrigerant industry will change fundamentally, or usher in a long-term upward business cycle.