The EPA has proposed an R-22 allocation reduction of an additional 11% to 46%. The final number has not been set, however, R-22 production and importation reductions of between 10 million and 55 million pounds for 2012 will have a significant impact on supply and have already resulted in price increases. The big three producers of R-22 have announced price increases, restrictions on purchase volume and monthly allocation based upon prior years purchases.
USA Refrigerants is committed to providing the R-22 needs of our customers for the 2012 season and years following, leading to the eventual, complete phase out of R-22.
The market is unstable right now which is reflected in U.S. prices being all over the board. Do not wait! Get up to speed on R-22 prices. The situation is fluid and our analysts are upgrading market trends daily.
R-22 Update! 01/2012
As we have been informing our customers, the EPA has gone back to the drawing board on R-22 allocation. While there is much speculation about the way prices will trend, the facts remain as follows:
The EPA has capped production at 45% of the baseline.
R-22 Producers have raised prices, cancelled orders, moved out shipping dates and placed restrictions on purchasing volumes.
The EPA will not be commenting further until May 2012 at the earliest due to the 90 day statutory waiting period.
For all intents and purposes, pricing should essentially remain at current levels until the EPA makes it final ruling. The earliest date that the EPA will rule is May 2012. If the EPA ultimately rules that 45% of the baseline is the magic number for 2012 and that's it, prices may increase further. There are no indicators in writing or circulating that the EPA will allow for further production of R-22 beyond the 45% baseline already approved.
Phase 2 Stage 2 of the R-22 Phaseout Schedule January 1, 2011 through December 31, 2011
The schedule below is the latest schedule. However, it is under review for drastic acceleration of phase out.
E.P.A. Allowance and Allocation
The United States Environmental Protection Agency has issued its final HCFC Allowance and Allocation ruling, which limits production and/or importation of R-22. Following the EPA ruling, prices of refrigerant R-22 began to climb. The supply of R-22 in the U.S. is strictly controlled. The demand for R-22 in the U.S. is increasing as result of the implemented 13 SEER energy requirement on air conditioning equipment. Raw materials, manufacturing and energy costs are also rising and these too contribute to the increased prices.
E.P.A. HCFC Phaseout Schedule
Phase 1 2004 35% Overall Consumption Reduction* from prior year
Phase 2 Stage 1 2010 75% Overall Consumption Reduction* from prior year
Phase 2 Stage 2 2011 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 3 2012 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 4 2013 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 5 2014 An additional 10% Consumption Reduction* from prior year Phase 3 2015 90% Overall Consumption Reduction* from prior year Phase 4 2020 STOP R-22 PRODUCTION
*Consumption is calculated by the following formula: consumption = production plus imports minus exports.
USA Refrigerants, a leading supplier of refrigerants to the Automotive and HVAC/R industries has taking action on R-22. We are offering a USA managed purchase of R-22. You own and control the physical R-22. USA manages your inventory for you in our secured and insured warehouses.If you are interested in securing your inventory for the future and wish to participate with USA in our managed purchase of R-22, contact USA Refrigerants today at 1-908-581-8066 for more information. Secure your future R-22 now. The minimum managed inventory purchase is 6,000 lbs.(5 skids)