Higher Refrigerant pricing spikes seen in the last week (often described as “Freon”)
We have discovered from all supply chains of air conditioning distributors who sell refrigerant gases (Commonly referred by laypersons as Freon) that large price increases are expected into the summer for all refrigerant gasses, especially those with the “R-400” series designation. As many customers are aware, R-22 Freon (The most widely used refrigerant in A/C systems for the last 60+years) is being phased out by the government with a 2020 deadline. The newer A/C systems being built today use R-410A Refrigerant. R-410A is also known as Puron refrigerant for our Bryant and Carrier customers. ALL air conditioning manufacturers were required to redesign their A/C system equipment, coils and compressors to use this R-410A refrigerant because R-410 systems and R-22 systems could not use each other’s refrigerant. Most all A/C and heat pump systems are built to use R-410A today.
We are seeing a jump in R-410A pricing of over 85% compared to pricing just 5 days ago !!! The bad news is that this increase in pricing is expected to continue into the summer and possibly longer.
NOW IS THE TIME TO CHANGE THAT A/C SYSTEM YOU HAVE BEEN HOLDING OFF COMPLETING!!
**Do it now before equipment prices go up too!**
We say this because we would safely assume shortly after this issue with increased refrigerant pricing has settled, the manufacturers will have to raise the price of their equipment (New systems come re-Charged with R-410A). Below is the information we have garnered from discussions with dozens of distribution facilities.
USA Distributors of refrigerant are seeing a disruption on R125 and R32 coming in from China.
These are the basic components of all the R400 gases (especially R410A).
Here are some things to understand regarding this issue.
- China is a Refrigerant Powerhouse with over 90% of gases being manufactured in their country.
- To avoid further Chemical Plant explosions, China has implemented tighter policies regarding Plant Operations.
- The EPA Division in China have indoctrinated firm policies regarding Chemical Plant operation due to the high degree of smoke and air pollution, thus greatly impacting the manufacturing schedule.
- Out of the many Chemical Plants producing the R-400 Gases, all have been closed until further notice, leaving only 3 Plants to account for China’s own needs. As a result, there will be a direct effect on exports, thus decreasing the availability here in the USA.
- It has been forecasted that suppliers in other regions will offset China’s production issues, but will be sold at a higher cost. A nominal manufactured amount will be produced, until China’s plant issues are lifted.