With Ample Supply and Sluggish Demand, Hydrogen Peroxide Prices Plummeted in May

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Price Trend

According to data from SunSirs' data, the hydrogen peroxide market experienced a sharp plunge in might, with prices falling continuously by over 40%. At the beginning of the month, the average market price to hydrogen peroxide stood at 1,223 RMB/ton; by might 26, the average price had dropped to 726 RMB/ton—a decline of 40.6%.

Factors Contributing to the Decline in Hydrogen Peroxide Market Prices

Supply Side: Maintenance shutdowns at hydrogen peroxide vegetation are gradually concluding, leading to a rebound in manufacturers' operating rates. With increased external sales from associated downstream units (propylene oxide and caprolactam), supply-side pressure—particularly in the southern market—has intensified.

Demand Side: As the peak season draws to a close, immediate demand is contracting, and market participants are adopting a wait-and-see attitude from the sidelines. Key Downstream Sectors (Propylene Oxide/Caprolactam): With the peak season winding down, profit margins are under pressure; consequently, some producers have scaled back output, shifted to purchasing strictly on an as-needed basis, and seen a decline in new orders.

Cost Side: Raw material prices have retreated, causing cost-side support to collapse. With the downward direction in fluid chlorine and hydrogen prices easing production costs, manufacturers have demonstrated an increased willingness to offer price concessions in order to move inventory.

Market outlook

In summary: As of early June, fundamental supply pressures within the domestic hydrogen peroxide market persist, while downstream demand has weakened. However, the overall downward direction in hydrogen peroxide prices has slowed, and there is a high probability of a rebound; prices are projected to range between 700 and 900 RMB/ton.

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