In late May, External Cooperation and
Exchange Center of China’s Ministry of Ecology and Environment, together with
China Refrigeration and Air-conditioning Industry Association, held a meeting
on the acceptance of the first-stage HCFCs production line transformation
project. The project is undertaken by Chongqing Midea General Refrigeration
Equipment Co., Ltd, and receives grants from the Multilateral Fund of the
Montreal Protocol. Project officer Jin Zhao from External Cooperation and
Exchange Center of China’s Ministry of Ecology and Environment, Professor Chen
Huanxin from Huazhong University of Science and Technology, Professor Ma Guozhi
from Beijing University of Technology and other experts and representatives
attended the meeting. The production line checked and accepted this time uses
R32 as an alternative refrigerant to replace the function of R22 in a modular
machine. The expert group of this acceptance is satisfied with the result that
the project came out and the achievement of various indicators, so they all
agree to approve the production. The expert group also gives advice to the
company on promoting alternative products in the market.
Since the first batch of China’s
Refrigeration and Air-Conditioning Industries signed the contract of the
first-stage HCFCs production line transformation project, a total of 19
enterprises (36 production lines) have also signed the contract and
successfully passed the acceptance. Industries at the first stage plan to
eliminate about 8,450 tons of R22 refrigerant, with its products covering
compressor, unit air-conditioning, VRV, water chiller (heat bump) and other
refrigerating devices. During the first-stage operation, the government
collaborated with associations and manufactures, applying over 70% of
alternative technologies with low GWP value such as the use of R32, CO2, NH3.
The result of the first stage is beyond expectation, making positive
contributions to the first stage of HCFCs elimination.
The second stage of HCFCs elimination is in
the process. Enterprises especially medium sized and small enterprises should
actively apply for the HCFCs transformation project so as to make contributions
to environment protection for the country while achieving the goal of
transforming production lines and developing eco-friendly business.
Demand of R22 decreases in May
The price of R22 remains steady in the
market. Even though it is traditionally the peak season during this time in the
market, the demand of R22 is still weak and there is also a small demand in the
export market. The main reason for the increase in price in May lies in two
parts: the growing price of HF and the short supply of R22. According to the
feedback from enterprises, the actual shipment is low and a number of products
was even stocked up at the beginning of May.
Due to the fact that the production of a
majority of air conditioning industries grows slowly and that the alternative
refrigerant R32 is taking place of R22, the demand of R22 is obviously dropping
down, the production of HF remains slow, but the supply of goods with cylinder
is normal.
Demand of R32 still remains weak in May
The price of R32 remains low in the market. Some
insiders indicated that the demand of R32 in April slightly increased. However,
in terms of the whole industry, the supply of R32 still exceeds the demand. In
May, affected by the increase in price in HF and CH2Cl2, the cost of R32 grew
widely.
For more information about China's Fluorine market, please have a look at our monthly newsletter China Fluoride Materials Monthly Report.