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April 29, 2010
Update on Refrigerant Blends Supply Situation
Dear DuPont Refrigerants Distributor:
As previously communicated, the fluorochemicals industry is experiencing a significant global supply
shortage of HFC-125. All HFC-125 containing blends (402A, 402B, 404A, 407A, 407C, 408A, 410A, 507,
and all ISCEON® products) are affected by the current situation. This is impacting all manufacturers in all
regions of the world.
There are several factors impacting HFC-125 supply:
• Global demand for HFC blends has increased significantly in 2010 due to: 1) U.S. phaseout of R-22
in new equipment resulting in increased R-410A demand, 2) increase in demand for new equipment
as the global economy recovers from the recession, and 3) the European F-Gas regulation which
bans the use of virgin R-22 for new equipment and service in Europe.
• Reduced feedstock supplies (especially chlorocarbons in China) have constrained global supplies of
fluorocarbons including HFC-125 – and, feedstock prices have increased dramatically.
• Global demand for HFC-134a has increased as a result of major conversion from HCFC’s in
insulating foams. This also impacts HFC-125 supply since much of the world’s HFC-125 capacity is
in “swing plants” that are also used to produce HFC-134a.
As a result, we expect HFC-125 supply to be constrained through the July-August time frame at a
minimum, with inventories not fully recovering before fourth quarter 2010.
Based on market feedback, it is clear that all major refrigerant manufacturers have announced extended
lead times on orders for HFC-125 containing blends. DuPont is currently at one-month lead time to
provide as much insight into customers’ needs as possible and to be able to meet customers’
expectations. Please continue to work with your DuPont account representative to make sure your orders
are placed in accordance with this lead time requirement. We will continue to do our best to
accommodate shorter lead times whenever possible.