Adjustments to production quotas for hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs) for the year 2026.

Preface: In accordance with the Regulations on the Management of Ozone-Depleting Substances and the Notice on the Issuance of the Total Quota Setting and Allocation Plan for Ozone-Depleting Substances and Hydrofluorocarbons for 2026, the Ministry of Ecology and Environment has received production quota adjustment applications for HCFCs and HFCs in 2026 from 20 enterprises, including Shandong Aofan New Materials Co., Ltd. The specific adjustments are as follows:

Comparison of HCFCs/HFCs Quota Adjustments: Early 2026 vs. First Half of 2026 (Unit: tonnes)

Source: Compliance Division I

In June 2026, some fluorochemical refrigerant enterprises applied for quota conversions, involving a total of 10 varieties. Among them, the increases and decreases in production from enterprises manufacturing R22 and R134a essentially offset each other, keeping the overall industry quota stable.

In terms of varieties with increases, the production quotas, domestic production quotas, and export quotas for R32, R125, R152a, and R41 all rose. Notably, R152a, used as a propellant and blowing agent raw material, showed particularly strong demand, with its production quota increasing by 29%, the highest among all varieties. In contrast, quotas for R143a, R227ea, R245fa, and R236ea were mainly reduced, reflecting adjustments in market demand or corporate strategies for certain products.

Overall, this quota adjustment primarily involves the redistribution of quota resources among enterprises and does not change the overall shortage of quotas in the industry. The tight supply-demand balance in the market continues.

Comparison of Enterprise Quota Adjustments for HCFCs/HFCs: Early 2026 vs. First Half of 2026 (Unit: tonnes)

Source: Compliance Division I

I. Hydrochlorofluorocarbons (HCFCs)

This adjustment only involves the R22 variety and is limited to within the Juhua Group: Zhejiang Lanxi Juhua’s production quota/domestic quota increased by 6,410 tonnes/8,500 tonnes, respectively, while Zhejiang Juhua (Quhua) decreased by the same amount accordingly. The total R22 quota remained unchanged, representing an internal redistribution of resources within the group.

II. Hydrofluorocarbons (HFCs)

This adjustment involves nine varieties: R32, R125, R134a, R143a, R152a, R227ea, R245fa, R236ea, and R41. The specific changes are as follows:

• R32: The increase primarily came from Liaocheng Fluor New Materials (production quota +1,242 tonnes, domestic +817 tonnes). Taixing Meilan and Ruyang Dongyangguang achieved internal adjustments through offsetting; Inner Mongolia Yonghe and Shaowu Yonghe also carried out internal offsets, resulting in a limited net total increase for the industry.
• R125: The increase primarily came from Taixing Meilan (production quota +2,500 tonnes). Jinhua Yonghe, Inner Mongolia Yonghe, and Ruyang Dongyangguang all operated reductions, presenting a structural redistribution in the overall quota change.
• R134a: Juhua (Quzhou) and Taicang Sinochem reduced their production quotas by a combined 3,500 tonnes, all transferred to Ruyang Dongyangguang. Meanwhile, Taicang Sinochem internally transferred 4,000 tonnes of export quota (i.e., a reduction in domestic production quota) to Shaanxi Zhonghua Blue Sky, keeping the overall industry production quota stable.
• R143a: The reduction primarily came from Inner Mongolia Yonghe (production -517 tonnes, domestic -115 tonnes). Zhejiang Sanmei and Jiangxi Xingfu achieved offsets through quota swapping, keeping the overall industry quota essentially flat.
• R152a: The entire increase came from Zhejiang Ekessen (production +2,883 tonnes, domestic +688 tonnes), an increase of 32.8%, making it the most prominent performer.
• Other varieties: R227ea, R245fa, R236ea, R41, and other varieties saw minor adjustments, but their absolute values are small and have limited impact on the market.

Conclusion: This quota adjustment primarily involves the redistribution of resources among enterprises and does not alter the overall shortage of quotas in the industry. The significant increase in R152a quotas reflects its strong demand as a propellant and blowing agent. Mainstream varieties such as R32, R125, and R134a achieved structural optimization through internal offsets and transfers, but their total volumes remained essentially stable. The tight supply-demand balance in the market is expected to continue.