Market Dynamics: Hidden Price Hike Trends in Refrigerant Supply-Demand Balance

Last week, the refrigerant market maintained overall steady operations, with most products experiencing balanced supply and demand and stable prices. However, influenced by factory maintenance schedules and recovering downstream demand, prices for select popular products like R32 and R125 showed upward trends, injecting positive signals into the market.

Supply Side: Orderly Production Avoids Cutthroat Competition

Core Products Prioritized for Concentrated Production: Factories prioritized concentrated production of refrigerant varieties with higher captive usage to ensure supply chain stability.

Flexible Adjustment of Production-Sales Rhythm: Other products dynamically adjusted production plans based on inventory levels, quota consumption progress, and order demand. The industry avoided low-price competition, maintaining good market order.

Demand Side: Synergy of Domestic and International Demand Alleviates Supply-Demand Pressure

Domestic Market Structure Optimization: Despite seasonal factors causing a slight month-on-month contraction in domestic demand, factories effectively balanced supply and demand through reduced production strategies.

Stable Growth in Export Trade: Overseas demand continues to recover, coupled with factors like RMB exchange rate fluctuations, steadily increasing export order volumes and providing crucial demand support.

Downstream Industry Demand Remains Resilient: Key refrigerant applications like air conditioning, automotive, and heat pumps maintained steady growth, providing sustained momentum for the market.

Price Hike Logic: Holding Back Sales Intensifies, Popular Products Lead Gains

Export Demand Conversion Accelerates: Firm international prices reduced buyer caution, significantly increasing actual order transactions and prompting factories to accelerate shipments;

Quota constraints intensify supply restraint: Factories with limited HFC quotas have shifted from sellers to buyers, further tightening market supply and spreading a cautious selling mindset across the industry.

Price transmission effect emerges: Supported by supply-demand dynamics and cost pressures, multiple leading manufacturers have collectively raised quotations for popular products like R32 and R125. Prices may continue their steady upward trend.

In the short term, the refrigerant market remains tight with low factory inventories. Combined with downstream restocking demand, prices may continue a moderate upward trend. Customers are advised to closely monitor quota usage, plan procurement schedules rationally, and seize the window for price increases!