--- title: "CICC: Concentrated release of fire protection demand boosts R227EA price upward" type: "News" locale: "en" url: "https://longbridge.com/en/news/247096248.md" description: "CICC released a research report indicating that the price of the extinguishing agent R227ea has risen due to concentrated demand release, and it is expected to reach 60,000-65,000 yuan/ton by July 2, 2025, an increase of 10,000-17,000 yuan/ton compared to early June. As a small variety of HFCs, R227ea's quota concentration continues to rise, and it has irreplaceability in application scenarios such as data centers. The new national standard will enhance the actual filling amount of R227ea, and the price elasticity is significant against the backdrop of supply-demand mismatch" datetime: "2025-07-03T08:04:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/247096248.md) - [en](https://longbridge.com/en/news/247096248.md) - [zh-HK](https://longbridge.com/zh-HK/news/247096248.md) generator: "portal-rs" --- # CICC: Concentrated release of fire protection demand boosts R227EA price upward According to the financial news app Zhitong Finance, China International Capital Corporation (CICC) released a research report stating that, based on data from Fluor Online, as of July 2, 2025, the price of fire extinguishing agent R227ea is reported to be 60,000-65,000 yuan/ton, an increase of 10,000-17,000 yuan/ton compared to early June, and an increase of 17,000-22,000 yuan/ton since the beginning of the year. As a small variety of HFCs, the concentration of R227ea continues to rise after quota adjustments among enterprises (in June 2025, all R227ea quotas of Linhai Limin Chemical Co., Ltd. were adjusted to Zhejiang Lihua New Material Technology Co., Ltd.). As a non-aqueous fire extinguishing agent, R227ea has certain irreplaceability in application scenarios such as data centers. The new national standard is expected to enhance the actual filling amount of R227ea in single bottles, and the price elasticity is evident against the backdrop of supply-demand mismatch. ## CICC's main viewpoints are as follows: **Event** According to data from Fluor Online, as of July 2, 2025, the price of fire extinguishing agent R227ea is reported to be 60,000-65,000 yuan/ton, an increase of 10,000-17,000 yuan/ton compared to early June, and an increase of 17,000-22,000 yuan/ton since the beginning of the year. According to data from the Ministry of Ecology and Environment, the production quota for R227ea in 2025 is approximately 31,000 tons, of which Zhejiang Quhua Fluorochemical Co., Ltd. (ZJJH) accounts for about 9,400 tons (in October 2024, 2,200 tons of R227ea quota from Zhejiang Quzhou Fuhui Chemical Technology Co., Ltd. (in which ZJJH holds a 44% stake) was adjusted to Zhejiang Kangyuan Chemical Co., Ltd.), Inner Mongolia Yonghe Fluorochemical Co., Ltd. (Yonghe) accounts for about 7,100 tons, Sinochem Blue Sky Fluorine Material Co., Ltd. (HCSC) accounts for about 4,400 tons, and Changshu San Aifu Zhonghao Chemical New Material Co., Ltd. (Huayi Group plans to acquire) accounts for about 4,000 tons. **The concentration of R227ea quotas continues to rise** CICC believes that as a small variety of HFCs, the concentration of R227ea continues to rise after quota adjustments among enterprises (in June 2025, all R227ea quotas of Linhai Limin Chemical Co., Ltd. were adjusted to Zhejiang Lihua New Material Technology Co., Ltd.). As a non-aqueous fire extinguishing agent, R227ea has certain irreplaceability in application scenarios such as data centers. The new national standard is expected to enhance the actual filling amount of R227ea in single bottles, and the price elasticity is evident against the backdrop of supply-demand mismatch. **The new national standard helps to solve the issue of R227ea being short in weight** The new national standard "Gas Fire Extinguishing Systems and Components" GB 25972—2024, which will be implemented on December 1, 2025, stipulates in Article 5.3.13 that the cylinder labeling requires a permanent label to indicate "pre-filling weight of the cylinder group," "medium filling amount," and "post-filling weight of the cylinder group" in a prominent position on the cylinder group. The saturated vapor pressure of heptafluoropropane (R227ea) and perfluorohexanone is relatively low, making it impossible to determine the weight of the fire extinguishing agent by observing pressure; it can only be determined by weighing or using a liquid level gauge. In the past, there was no mandatory requirement to label the "pre-filling weight of the cylinder group," leading to frequent occurrences of R227ea being short in weight. CICC believes that after the implementation of the new national standard, the actual filling amount of R227ea in single bottles is expected to increase, driving the actual demand for R227ea, and under the constraints of supply, the price of R227ea is expected to continue to rise **The peak season for fire extinguishing agents has arrived, and the supply of HFCs extinguishing agents may tighten rapidly** The demand growth for fire extinguishing agents mainly follows the pace of building completions. In the fourth quarter, construction in northern regions is limited due to winter, making the third quarter a peak season for completions. The demand for fire extinguishing agents is entering a peak season, and the low inventory levels maintained by distributors are expected to continue to drive up R227ea prices. From a policy perspective, according to China's implementation of the national program for the Montreal Protocol on Substances that Deplete the Ozone Layer (2025-2030), R227ea falls under HFCs extinguishing agents. The price increase will help enhance the penetration rate of new extinguishing agents (such as perfluorohexanone), aligning with the national control and reduction policies for HFCs extinguishing agents. At the same time, R227ea remains the mainstream extinguishing agent for important downstream sectors such as data centers. The continuously growing demand for extinguishing agents in data centers, combined with tightening supply from policy measures, will further expand the medium to long-term supply-demand gap. **Risk Factors** The penetration rate of new extinguishing agents exceeds expectations, changes in HFCs policies, etc ### Related Stocks - [600378.CN](https://longbridge.com/en/quote/600378.CN.md) - [600160.CN](https://longbridge.com/en/quote/600160.CN.md) - [605020.CN](https://longbridge.com/en/quote/605020.CN.md) ## Related News & Research - [Jiangsu Lopal Tech Shareholders Approve Capital Increase and Registry Changes at EGM](https://longbridge.com/en/news/297933378.md) - [Ships adopt makeshift anti-drone defences as Black Sea attacks intensify](https://longbridge.com/en/news/297784645.md) - [Asia Fuel Oil-VLSFO cash premium steadies, HSFO extends decline](https://longbridge.com/en/news/297900702.md) - [Align Capital’s Marco Sealing Solutions acquires Global O-Ring and Seal](https://longbridge.com/en/news/297905587.md) - [Denmark sends conscripts to Greenland as Arctic tensions grow](https://longbridge.com/en/news/297744144.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**