R125 — Quota-Driven Shortage Drives Prices to 60,000 RMB/Ton as Long-Term Contracts Tighten Amid Kigali Baseline Year Finale

The R125 (pentafluoroethane, HFC-125) refrigerant market has experienced unprecedented price escalation in 2026, reaching a market-defining level driven by strict production quota enforcement under the final year of the HFC baseline period for the Kigali Amendment to the Montreal ProtoCol. According to Mysteel market data, Zibo Feiyuan Chemical quoted R125 at 60,000 RMB per ton for both domestic and export markets as of June 1, 2026, reflecting the sustained tightening of HFC supply across all major categories.

The Kigali Amendment requires signatory countries to baseline HFC production and consumption in 2026, after which annual reductions will be phased in. This quota system creates several market dynamics – total production volumes are effectively frozen at baseline-year levels with little capacity for incremental increase, leading manufacturers to strategically limit output to protect pricing. The long lead times required to secure quota allocations have concentrated supply among a handful of large producers. The supply-demand mismatch has intensified as production capacity is capped and downstream pre-emptive procurement has surged. Refrigerant blending customers, commercial refrigeration operators, and intermediate buyers – all seeking to secure quota-linked future supply – have driven spot market liquidity to critically low levels.

R125 is a key component in refrigerant blends including R404A (for low-temperature cold chain and commercial refrigeration) and R410A (for residential and commercial air conditioning systems). According to the Fluorochemical Industry Monthly Report from Guosen Securities, the Fluorochemical Price Index and Refrigerant Price Index rose 5.6 percent and 2.67 percent respectively month-on-month in April 2026, with multiple fluorochemical products including anhydrous hydrofluoric acid, trichloroethylene, and various refrigerants showing varying degrees of price increase. As the 2026 baseline year deadline approaches, analysts expect R125 prices to remain at elevated levels. End users searching for "R125 refrigerant price per ton" or "pentafluoroethane bulk gas supplier" should expect continued tightness through the remainder of the year. The only relief may come from emerging lower-GWP alternatives, though these require significant investment and regulatory approval.

Sources: Mysteel, June 1, 2026; Guosen Securities Fluorochemical Monthly Report, May 2026