What is driving the recent price surge of R32 refrigerant and how does it affect R22?

What is driving the recent price surge of R32 refrigerant and how does it affect R22?
R32 prices have hit record highs, reaching 47,500 yuan per ton on April 1, 2025, up 33.8% from September 2024 and a staggering 280% from August 2022. This surge stems from China's quota system on HFC refrigerants implemented in 2024, combined with strong seasonal demand from the air conditioning sector. While R32 is positioned as a lower-GWP alternative to R22, the price rally signals tightening supply across the fluorochemical chain. For R22, which remains widely used in residential and commercial cooling, the R32 price spike creates indirect pressure, as producers prioritize higher-margin R32 output. Downstream users of R22 face potential supply constraints and cost pass-through risks as the industry transitions under the Kigali Amendment and China's HCFC phase-down schedule targeting 67.5% reduction by 2025.