HOME > NEWS > Industry News

2018 Refrigerant R22 Pricing Predictions

2017-12-12 15:12:05 ZIBO IRVINE INDUSTRIAL CO.,LTD. Read

Considerations:

1)In 2020 there will be NO importing or producing of R-22 allowed in the United States. The only source for R-22 refrigerant will be through reclamation. Think about that for a second. The only way you can get R-22 is by sourcing it from a reclaimer. Can you imagine what will happen to the cost of this stuff when the year 2020 comes?

2)Hudson Technologies and A-Gas Americas, have been buying up all of the refrigerant reclaimers in the States in an effort to monopolize the market and the price of R-22 so that when the 2020 deadline comes they will control nearly all of the market and sale of R-22. 

3)On the flip side of the two points that I made it is worth noting that R-22 machines are dying. No new machines could be produced in 2010. So, that means that the youngest R-22 units out there are at least eight years old.

5.jpg


Pricing Predictions

Before I get into my prediction let’s take a quick look to see how the pricing has climbed over the years. Keep in mind that these prices are based off the standard R-22 thirty pound cylinder.

2015 – $300.00

2016 – $450.00

2017 – $500.00


That is a fifty percent increase from the year 2015 to 2016. Then from 2016 to 2017 we have about a ten percent increase. As you can see we had a rather big jump in price the moment the tighter phase out restriction hit in 2015. I would say that we will experience the same effect if not more in 2020. It could go upwards to $800-$900 a cylinder when 2020 hits.


As for what will happen in 2018 for R-22 pricing I would say that we are going to experience a year very similar to 2017. The price will go up, albeit it slightly. If I was to put a number to it I would refer to this year and call it a ten percent increase. So, if we’re looking at a price of around $500 expect to see a price next year of around $550-$575 for a thirty pound cylinder. Keep in mind that this is for individual cylinders. If you were to purchase a few at a time or even a pallet at a time you’ll be able save some money and maybe even get into the $400 range for a cylinder.


Next year’s predicted price for a thirty pound cylinder of R-22 is set at $550-$575. If you are looking to buy some I would suggest to buy it now before the price climbs any higher. However, if you are on the other side of the coin and you have some inventory that you are sitting on I would hold onto it and watch the value climb and climb. I’ve even heard of some people buying whole pallets a few years back and storing it away in their warehouse for a few years. Imagine the profit if you bought forty cylinders at $300 and then turned around and sold them at $900 a few years later once the 2020 phase out laws have been put in place.