2014’s Mild Summer

I don’t know about you, but here in Kansas City we have had a VERY mild summer compared to past years. So far this summer we have STILL yet to reach a one-hundred degree day. If one hundred degrees seems crazy let me remind you that the typical months of July and August in Kansas City have 20-25 one-hundred degree days.

Not only do we have the nice lower temperatures but we also have the lower electric bills due to our air conditioners not working near as hard. Typically, Refrigerant price spikes in summer, sometimes upwards one-hundred percent or more.

A few years ago I was buying wholesale R-134A Refrigerant for around $60.00 a jug in mid-March. Fast forward a few months and add in an extremely hot summer and R-134A prices sky-rocketed to over $200 a jug. If you saw the increase coming (Don’t know how you would.) you could have bought up at the $60.00 a price and made a killing selling $200 a jug to anyone and everyone who needed a jug.

On the other side of the coin though in early 2014 I was buying wholesale jugs of R-134A Refrigerant for low $70.00. In the first quarter of 2014 it was announced that the Federal Government was looking at adding tariffs to all imported R-134A Refrigerant. These weren’t insignificant tariffs either, some discussions were $40-$50 a jug. This caused a lot of panic in the industry and R-134A went from $70.00 up to $145 in just a few weeks. It has since calmed down some, but we are still looking at around $115 wholesale price. I predict by the end of the sumer and or fall that it will taper off to around $100 wholesale price and around $120-$130 retail to the end user.

R-134A is really the only Refrigerant that I know of that spikes and crashes like that. I’ve been watching the R-410A market for a few years now and it really stays pretty consistent. Wholesale price stays right around $60-$75 per jug. Most end users are paying around $100-$120 per jug. I really haven’t seen this price change too much, so I wouldn’t really worry about watching the market too closely on R-410A.

Keep in mind though that the hotter the summer the higher the Refrigerant price goes. It really just boils down to supply and demand, if the demand for Refrigerant is high you’re going to pay like crazy to get your house or car cool again.

Thanks for reading,

Alec Johnson

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