Refrigerant R-22 prices have collapsed by more than $200.00 per 30# cylinder since April, 4th 2013 when the EPA reversed its environmental policy and allowed for an additional 30 million pounds of excess R-22 into the U.S marketplace. Supply now outpaces demand for R-22 and the market is adjusting with lower prices.
It remains uncertain if the EPA will reverse its inconsistent decision to increase R-22 allocation. In the meanwhile, R-22 allocation is expected to decrease in January 2014.
BUYBACK PRICES ON RECOVERED R-22 TANK AS A RESULT OF EPA OVERSUPPLY ALLOCATION RULING
Effective July 18th, 2013, the USA Refrigerants buyback price on
R-22 is $1.00/lb. with a minimum return of 200 pounds+/-. R-22 buyback prices have dropped from an historic high of $8.50/lb. since April 2013. Expect continued low buyback prices until the over saturated R-22 market has absorbed the oversupply or the EPA recognizes its own policy inconsistency and makes the proper adjustments. The actual buyback price paid is based upon the buyback price on the date of pick up and fluctuates with R-22 market conditions.
We urge all responsible R-22 buyback program participants to continue to recover R-22 as a sound environmental practice with the expectation of higher buyback prices to come sometime in 2014.
I'm not a huge HDSN bull given the EPA decision, but I'm guessing the massive northeast heat wave (107 in NYC) earlier in the month helped create a lot of R-22 demand and clear out a lot of R22 inventory. Prediction: Q3 will be their best Q3 ever if only because of delayed 2Q orders.
The EPA recognizes its own policy inconsistency, what are the odds? Terrible decision by the FDA to deter people from sticking to reclamation program... Ooooh, 1$ a pound, and how much does it cost to ship or deliver R-22? Not worth it for a lot of these guys.
From what I can make out the EPA says they were facing some sort of a lawsuit about allocations and had to do this ( I really do not understand) does that mean that now Hudson can now sue or does it mean that Airgas & Hudson did not do their homework . What about longterm with 85% of the AC still using R22 is this a delay. What about all the talk about replacement products that Dupont and others are pushing???? Stay away watch and wait