In 2015, production quota for R22 used as
refrigerant is furthered reduced, causing decline in supply and driving up the
market. However, illegal production appears in the industry. Without
strengthened supervision, the interests of qualified enterprises will be
encroached on and the substitution for R22 used as refrigerant will be drawn
back.
Source: Internet
In 2015, the production quota for
difluorochloromethane (R22, used as refrigerant, similarly hereinafter) is
further reduced to 274,279 tonnes, indicating a supply shortage. This will
promote the development and popularization of substitutes for R22.
However, the substitution for R22 is found
to be insufficient.
Immature application technology for
difluoromethane (R32) fixed-frequency air conditioners;
Propane (R290) air conditioner not accepted
by Chinese market due to safety risk and high price;
R410a (a 1:1 mixture of R32 and
pentafluoroethane – R125) variable-frequency air conditioner under expansion,
slower growth compared with quota reduction in R22 (a YoY decline of 34,035
tonnes in 2015).
Theoretically, the supply shortage of R22
should have showed in the market. However, CCM found no such phenomena. Manager
Zheng from Zhejiang Juhua Co., Ltd. even stated that the insufficient supply
will not appear within the next 2 years. He also disclosed that some R22
manufacturers with no production quota continued the production secretly.
What’s worse, small enterprises not qualified for R22 production began to pass
dichlorodifluoromethane (R12) off as R22, or use a mixture of R12, dimethyl
ether and R22 to replace R22.
The influences brought by illegal
production, including counterfeited and inferior R22 and R22 produced by
enterprises with no production quota, are being deepened. If relevant
government departments do not severely punish such violations, the interest of
qualified producers will be threatened. Meanwhile, it will draw back the
elimination of R22 and hinder the development of substitutes for R22.
With regard to the illegal R22 production:
- Qualified producers with production
quota: price will be squeezed by R22 produced illegally. This will also draw
back their expansion in substitute market;
- Distributors, traders and maintenance
service: urged by low-price and high-profit R22 which is produced illegally,
they would take the risk to purchase such R22.
- Refrigeration and air-conditioning
manufacturers: commonly not choosing counterfeited and inferior R22, since it
would largely shorten the service life of air-conditioning compressors and
refrigeration system; inclined to using R22 produced by enterprises with no
production quota, as it presents similar quality and they can squeeze price
when purchasing.
In comparison with counterfeited and
inferior R22, R22 produced by enterprises with no production quota will have
more distinct impact on the industry, especially in the second half of a year
when most of qualified enterprises have to reduce production because of lack
for production quota.
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