April 14th — Recently, the Ministry of Ecology and Environment issued the "Announcement on Prohibiting the Production of Multi-Split Air Conditioning (Heat Pump) Units Using Chlorodifluoromethane (HCFC-22) as a Refrigerant (Draft for Comments)." It mentioned that, in accordance with the relevant provisions of the "Regulations on the Management of Ozone-Depleting Substances" and the requirements of the "National Implementation Plan for China's Compliance with the Montreal Protocol on Substances that Deplete the Ozone Layer (2025–2030)," the multi-split air conditioning (heat pump) unit industry will completely ban the use of chlorodifluoromethane (HCFC-22) as a refrigerant. Starting from January 1, 2027, the production of multi-split air conditioning (heat pump) units using HCFC-22 as a refrigerant will be prohibited.
Chempricehub Analysis on R22, Bull-Bear Score: -1.5
The Ministry of Ecology and Environment’s announcement prohibits the production of multi-split air conditioning products using HCFC-22 (R22) as a refrigerant, effective from January 1, 2027. This will lead to a significant reduction in R22 demand, as the policy accelerates the industry’s transition to environmentally friendly alternatives. The risk of oversupply in the spot market increases, putting downward pressure on prices. The score is -1.5 (strong bearish), as although the policy impact is not immediate, it involves a decline in demand across the entire industry. Moreover, R22’s market share as a traditional refrigerant will gradually be replaced. While the bearish factors are clear, the transitional buffer period should also be considered.
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