You may have noticed that the price of R410a has recently increased, and you are probably wondering why. We are here to explain, but first, understand that the R410a price increase is an industry-wide issue. As you know, at CE we are always looking out for our customers, and as soon as we can lower the price of R410a, you can be assured that we will.
What Is Causing the R410a Price Increase?
So why did the price of R410a change so dramatically? It comes down to two main reasons:
- There is a worldwide R410a shortage. Douglas Mackemer, National Parts & Supplies Director at CE states, “China is experiencing a temporary shortage of of components that make up R410a. This is resulting in a refrigerant shortage and price increases. This shortage is compounded by demand increase during the summer months, and it is affecting both after-market and OEM suppliers.”
- There is a new tax on R410a. Last June, the U.S. Department of Commerce and International Trade Commission implemented a new tax on key refrigerant blends that are imported from China—and yes, R410a is affected. This tax is based on the current price of the refrigerant, so when the price increases, so does the hefty tax (as high as 216% of the cost).
What Is CE Doing to Address the R410a Shortage?
First, we are very closely monitoring our R410a acquisition, and when we have some available, we are releasing it on a limited basis. When necessary, we are setting quantity limits to make sure the R410a is not being stockpiled. We are doing everything we can to keep the limited supply available for any customer that requires it. “Our focus at this time is to make sure all of our customers have the materials they need to perform their jobs,” adds Nabila Rana, Senior Product Manager at CE.
What Happens Next?
While nobody can predict the future, we believe that the R410a price increase will continue throughout the summer since refrigerant will remain in demand. However, as the weather starts to cool (usually around the end of August or early September), and demand decreases, we anticipate the R410a shortage will be less prevalent. However, this may not necessarily result in a significant price decrease due to other factors affecting pricing.
We can promise you one thing though: No matter what happens, you can depend on CE to keep you in the know. While we have no control over the R410a shortage or price increase, we will do our best to keep our customers happy and informed about any industry information we receive. If you have any further questions about the R410a shortage, don’t hesitate to contact us.