In August, the hydrogen peroxide market experienced a weak decline, with a drop of over 9%. At the beginning of the month, the average market price of hydrogen peroxide was 636 yuan/ton. On August 17th, the average market price of hydrogen peroxide was 576 yuan/ton, a decrease of 9.42%.
Reasons for the fluctuation of hydrogen peroxide market
Supply side: Overall supply is loose, and overcapacity in the industry is a long-term pressure. The continuous planning and implementation of new production capacity have led to partial equipment maintenance. Overall production has not significantly contracted, and many large factories in Shandong are operating at full capacity, resulting in a large output of goods and lowering the bottom line of prices in North China.
Demand side: Traditional downstream industries are weak: papermaking and textile bleaching are in the off-season in summer, with stable demand and no centralized replenishment of caprolactam and other major chemical downstream industries. Raw material procurement is cautious and can be taken as needed, with a slight increase in exports. Guangxi has sent a large amount of hydrogen peroxide to Vietnam, but the volume is limited, making it difficult to reverse the domestic surplus pattern. Traders have a bearish mentality and low willingness to actively stock up, with a focus on fast in and out.
In summary, in mid August, the basic supply and demand of hydrogen peroxide in China were weak, and the market continued to decline. From a technical perspective, it can be seen that the hydrogen peroxide market was at a low level in early August, with promising upward potential. In late August, the hydrogen peroxide industry is expected to stop falling and rise, with a high probability of increase. The expected price is between 500 yuan/ton and 600 yuan/ton.
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