Chemours is to double the price of high GWP refrigerants R404A and R507 from next month as the European F-gas phase-down really begins to bite.
With refrigerant manufacturers, suppliers and industry groups repeatedly warning of price increases and shortages of high GWP refrigerants, this latest unprecedented increase is the third by Chemours in the last three months and will take effect from July 1.
Other manufacturers are likely to follow suit. In April, Chemours’ main competitor Honeywell announced that it would cease all sales of R404A and R507 in Europe from next year.
Prices of all medium and high GWP refrigerants from all manufacturers and suppliers have risen dramatically this year in anticipation of the 37% cut in CO2e required next year under the European F-gas regulations.
Following 25% and 30% rises in April and May, this latest huge increase means that the prices of R404A and R507 have risen by 225% in just three months. And it appears that this will not be the last.
Other common medium GWP refrigerants are also coming under increasing pressure. The air conditioning refrigerant R410A will be hit by a 50% price increase from July 1, as will the R404A alternative R407A. R134a is hit again, this time with a 40% rise. In all, these latest increases mean that R134a and R410A have virtually doubled in price since April 1.
Chemours has not commented on these latest increases but speaking at the recent RAC Question Time in London, Janet Ludert, Chemours fluorochemicials EMEA marketing manager warned: “Legacy products like R404A, R134a and R407C may become harder to find in the coming years. We have to manage our quota and for every container of R404A we can sell three containers of XP40 to help the market transition.
“It’s important that we make sure we manage that quota so we don’t exceed it. Obviously we don’t want to be non-compliant, we don’t want fines and penalties. We take very good care on a month to month basis that we manage our quota properly. That might mean in some months quota and product is less available than previous months,” she added.