Refrigerant Prices Surge 42 Percent Industry Faces Severe Supply Challenges

Recently, Honeywell and iGas USA announced significant price hikes for refrigerant products to combat rising tariff impacts, raw material costs, and supply chain constraints.

On April 11, Honeywell informed customers that the demand for Solstice® 454B has surged due to geopolitical and trade factors. Domestic production can no longer meet North American needs, forcing reliance on costly imports. As a result, from April 9, 2025, a surcharge of $4 per pound is applied to new 454B orders, along with a 42% additional fee for orders placed after February 15. Prices for Solstice® HFO products increased by 10%, and Genetron® series by 5% to offset raw material price pressures.

Amanda Josey, Honeywell’s General Manager for Fixed Refrigerants, stated the company has absorbed costs for months but reached a “breaking point,” making price adjustments essential to maintain supply chain stability.

Similarly, iGas USA announced an emergency pricing policy, invalidating all previous quotes amid growing supply-demand imbalances. The refrigerant market is under strain due to rising demand for A2L environmentally friendly products like R-32 and R-454B, as well as shortages of critical raw materials and specialized cylinders.

Data shows R-32 now accounts for 35% of refrigerants in new air conditioning systems, while R-454B covers 65%, favored for its high efficiency and low global warming potential. However, the limited production of A2L-specific cylinders is worsening supply disruptions, which iGas predicts will persist into 2025.