R22 Prices Retreat as China's Refrigerant Market Faces Tight Quotas and Soft Demand

China's refrigerant market fluctuated at elevated price levels on October 21, 2026, with R22 leading the pullback. Its ex-factory price stood at RMB 19,500 per tonne, while R32 and R134a remained quoted at RMB 65,000 per tonne each. The divergence highlights a market in which tight supply constraints are meeting uneven demand.

The 2026 quota for third-generation refrigerants totals 797,800 tonnes, with the six largest companies holding more than 90% of the allocation. These limits constrain supply, but they do not guarantee that buyers will accept higher prices or maintain purchasing volumes.

R22's decline points to demand pressure

R22 faces pressure from declining demand in its existing market and selling by traders. Together, these factors suggest that near-term purchasing needs and the volume offered for sale can weigh on prices even when the broader refrigerant market remains elevated.

The distinction between products matters. The quota figures concern third-generation refrigerants, while the reported pressures on R22 relate to its own demand and trading conditions. R22's retreat therefore does not, by itself, establish that R32 and R134a are entering a similar decline. Their unchanged quotations also do not establish stronger demand.

Purchasing decisions hinge on demand follow-through

For buyers, the immediate issue is whether current prices are supported by actual replenishment needs. Purchasing against confirmed requirements can limit exposure to a further correction while covering operational needs. The available market signals favor this approach over building inventory in anticipation of continued price increases.

The next development to watch is whether R22's selling pressure persists and whether demand for R32 and R134a can sustain their current quotations. Continued weak purchasing would test price support from constrained supply; firmer replenishment demand could help stabilize prices. For now, the evidence supports a cautious, product-specific assessment rather than a single price outlook for all refrigerants.