Chongqing Midea R22 phase-out project accepted 06-13-2019

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.

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