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Why does your refrigerant prices jump around some much?
Several clients have asked us: “Why does your refrigerant prices jump around some much?” Attached is some documentation that helps explain the fluctuation, but in a nutshell, here is why. The government is in the process of phasing out R22. This is similar to when Lead Gas was phased out, or for the younger crowd. When Ethanol Gas was phased in.
As the R22 supply phases out the cost to purchase what is left goes up. Like gas, this is a supply and demand issue. When more people need it the price goes up, less people, the price goes down. The thought was as these old R22 system fail and are replaced with new R410a systems, then the problem would go away. Welcome to the global economy and how politics affects your everyday life.
Now there are global pressures on countries that produce the new R410a refrigerants. On July 16, 2015, the Department of Commerce (Commerce) announced the initiation of the antidumping duty (AD) investigation of imports of certain refrigerant components from China. The restrictions put in place has caused the supply of the new 410a to reduce, and now like the old R22 the prices are very volatile.
Here at House Call Company, we track these trends very closely and try to purchase refrigerants at the best possible price for our clients. We competitively price them so any changes up or down get passed through to our clients. SO, long story short. The reason is a combination of supply, demand and the government.
We will continue to try and bring you the best deals as we receive them, and thank you all for allowing us to continue to serve you. If you have any burning question you would like answered by our team, please feel free to send them to us at any time. We do our best to quickly and accurately answer all of your questions.