Supply Tightens, Demand Holds Strong—Hydrogen Peroxide Prices Soar

April 21 news

According to Spotcom data: In April, the hydrogen peroxide market supply tightened, and demand improved, with both factors supporting a significant price increase, pushing prices into the "four-digit" era. At the beginning of the month, the average market price of hydrogen peroxide in China was 796 CNY/ton. By April 21st, the average market price of hydrogen peroxide in China had risen to 1,033 CNY/ton, an increase of 29.71%.

Reasons for the Increase in This Round of Hydrogen Peroxide Prices in China

Demand Side: In late April, as pre-holiday stocking demand kicked in, epoxy propane enterprises in northern China continued to ramp up their purchases, demonstrating strong absorption capacity. Meanwhile, the operating rates at caprolactam plants rose, boosting demand for hydrogen peroxide. Downstream industries such as papermaking and new energy (iron phosphate) also engaged in concentrated procurement, providing robust support to the market.

Inventory and Supply Situation: Production enterprises have ample orders, and the overall inventory level continues to decline. Many water companies in China are even implementing controlled shipments. The low inventory levels provide a solid foundation for price increases. In Shandong, Anhui, and Sichuan regions, some hydrogen peroxide producers have suspended operations for maintenance, and some companies in the Hangzhou area have reduced production. This has led to a temporary supply shortage, driving a significant increase in hydrogen peroxide prices.

Technical analysis forecast for hydrogen peroxide spot: From the price trend chart of hydrogen peroxide, key indicators: In early March, the 10-day moving average of hydrogen peroxide crossed above the 20-day moving average, indicating an upward trend in hydrogen peroxide prices. On April 12, the 10-day moving average of hydrogen peroxide again crossed above the 20-day moving average, and in the latter part of the month, hydrogen peroxide prices showed a significant increase. On April 19, the 10-day moving average still remained above the 20-day moving average, suggesting that hydrogen peroxide prices will continue to remain high by the end of the month.

Auxiliary Indicator: In late April, the price of hydrogen peroxide reached its 30-day high and its 20-day high, indicating that, in the long term, there is still limited room for further price increases in the hydrogen peroxide market.

To sum up: In late April, China’s hydrogen peroxide prices had already reached historic highs. After the May Day holiday, the stockpiling frenzy came to an end, and supply pressures remained relatively loose. With terminal demand declining, hydrogen peroxide prices have begun to gradually decline.

From a technical perspective, it can be seen that in late April, the hydrogen peroxide market in China is at a historically high level, with insufficient momentum for continued increases. In May, the hydrogen peroxide market in China will mainly experience high-level fluctuations, with a higher probability of decline. It is expected that prices will range between 800 CNY/ton and 1000 CNY/ton.