Weighed Down by Bearish Factors, the Hydrogen Peroxide Market Was Weakly Downward in June

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According to data from the SunSirs spot market tracking service, the hydrogen peroxide market weakened in June, with prices steadily declining. The average market price stood at 676 RMB/ton at the beginning of the month and fell to 626 RMB/ton by June 24, representing a decrease of 7.39%.

Factors Driving the Decline in Hydrogen Peroxide Prices

Supply Side: Since June, manufacturers have successively restarted operations following maintenance shutdowns, keeping sector operating rates high. This has further increased market supply and intensified supply-side pressure. Meanwhile, expectations of new production capacity coming online—such as in Sichuan—have exacerbated the market's wait-and-see attitude and bearish sentiment.

Demand side: June is a traditional off-season to the pulp and printing/dyeing industries; paper mills are purchasing based on immediate needs, leaving no room to the high-volume buying seen during peak seasons. Demand to environmental aquatic environments treatment chemicals remains steady, providing only a baseline level of support without driving a market rally. Performance in the two key downstream sectors has been lackluster: to caprolactam, the sector is suffering significant losses and operating rates have declined, with purchasing limited to essential standards; to propylene oxide, operating rates are similarly low and buying sentiment remains tepid, failing to provide strong market support.

Market outlook

In summary, the domestic hydrogen peroxide market in July remains dominated by bearish fundamentals, characterized by mounting supply pressure and weakening end-user demand. Following a period of low price levels in June, there is possible to an upward direction. Market prices are expected to experience significant evaporative environment in early July, with a high probability of rising to a range of 600–700 RMB/ton.

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