According to data from Shengyishe Spot News, in early May, the hydrogen peroxide market experienced a sharp decline, with demand improving and the market steadily heating up. At the beginning of the month, the average market price of hydrogen peroxide was 1223 yuan/ton. On May 12th, the average market price of hydrogen peroxide was 916 yuan/ton, a decrease of 25%.
Reasons for the decline in the hydrogen peroxide market
Supply side: After the May Day holiday, hydrogen peroxide manufacturers resumed production, with a national operating rate of nearly 80%. Pre maintenance (centralized completion, increased external sales of supporting equipment (epoxy propane/caprolactam), gradually relaxed supply, and increased supply pressure in the south.
Demand side: The downstream peak season is gradually coming to an end, and the terminal’s ability to accept high priced hydrogen peroxide is average, putting pressure on profits. Some manufacturers have reduced production and made on-demand purchases, resulting in a decline in procurement volume. New energy manufacturers are adopting a wait-and-see approach at a high level, resulting in a decrease in orders. Demand is weakening, buying up instead of buying down, and market transactions are sluggish.
Cost side: Loose raw materials, weakened support, falling prices of liquid chlorine and hydrogen, lower production costs, and increased willingness of enterprises to offer discounts.
Technical Prediction of Business Society’s Hydrogen Peroxide Spot Analysis: From the price trend chart of Business Society’s hydrogen peroxide, it can be seen that key indicators: in early May, the 10 day moving average of hydrogen peroxide crossed the 20 day moving average, and the spot market of hydrogen peroxide plummeted in early May, with prices continuously falling. The probability of a price drop for hydrogen peroxide in the latter half of the year is relatively high.
Auxiliary indicators: In early May, the price of hydrogen peroxide was at a low level on the 10th, 20th, and 30th, indicating that there is still room for upward trend in the hydrogen peroxide market in the long run.
In summary, in late May, the domestic hydrogen peroxide fundamentals were in a long short game, with supply pressure still present and terminal demand flat. From a technical perspective, it can be seen that the hydrogen peroxide market was at a low level in early May, and the overall market fluctuated widely in late May, with a high probability of an increase. The expected price is between 750 yuan/ton and 900 yuan/ton.
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