CCM: China's R22 price continues falling largely in November 2015 03-22-2016

In November 2015, China’s R22 price continued decreasing largely, near to the cost line. CCM predicts that the price will gradually go up for the peak period in Q2 2016. 


In November 2015, China’s difluorochloromethane (R22) market stayed sluggish. Pressured by the excess production quotas, the companies, in a move to maintain shipments, down-regulated the prices further. For instance, the ex-works price was USD1,493/t (RMB9,551/t), down by 13.70% MoM.


In late November, however, the companies showed strong intention to stabilise the prices, since the prices came near to the cost lines, particularly when the leading companies such as Zhejiang Juhua Co., Ltd. and Shandong Dongyue Chemical Co., Ltd. took the lead to do it. Gradually, the prices were stabilised. In addition, the industry meeting was held at the end of November, during which the transaction price was negotiated to be no less than USD1,329/t (RMB8,500/t). This also contributed to price stabilising.


Notably, the ex-works price of R22 in November was lower than that of USD1,609/t (RMB10,293/t) in early 2014, indicating that the cumulative growths in full-year 2014 was devitalised already.


                                      Ex-works price of difluorochloromethane in China, 2014 & January–November 2015


Source: CCM 


As the market has not yet showed upturn, distributors and traders, holding an attitude to buy when the prices are going up instead of going down, are in the wait-to-see state, not stocking goods as they did at the end of 2014.


In addition, the Foreign Economic Cooperation Office, Ministry of Environmental Protection would release the 2016 production quota later, which is expected to be further cut down. This will also relieve the supply-demand imbalance. In Q2, the price will make a rebound.


For more information about R22 market in China, you could visit CCM's Online Platform.




About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc. More about CCM, please visit www.cnchemicals.com.


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