Supply Pressure Doubles, Hydrogen Peroxide Prices Continue to Fall in China

June 8th, news:

According to SpotCom data: At the beginning of June, the hydrogen peroxide market weakened, with prices continuously falling, a price decrease of nearly 4%. At the beginning of the month, the average market price of hydrogen peroxide in China was 676 CNY/ton. On June 8th, the average market price of hydrogen peroxide in China was 650 CNY/ton, a decrease of 3.94%.

Reasons for the decline in hydrogen peroxide prices

Supply side: After the May Day maintenance period, the operating rates of production enterprises have increased, and the market supply is abundant. Inventory pressure has increased, and the volume of goods in northern regions has strengthened. Water companies face greater pressure to ship goods, and inventory levels are rising.

On the demand side: Downstream purchasing by major consumers remains sluggish. The two key downstream sectors for hydrogen peroxide—caprolactam and propylene oxide—both suffer significant losses, leading to lower operating rates at enterprises. As a result, companies are maintaining only rigid demand-based procurement of raw materials, lacking any substantial impetus for recovery.

Technical analysis forecast for hydrogen peroxide spot prices: From the price trend chart of hydrogen peroxide, key indicators show that on May 11, the 10-day moving average of hydrogen peroxide crossed below the 20-day moving average, indicating a downward trend. At the beginning of June, the 10-day and 20-day moving averages of hydrogen peroxide gradually approached each other, with the difference between them narrowing in reverse, leading to a slowdown in the rate of decline.

Auxiliary indicators: In early June, the price of hydrogen peroxide was at a 10-day low, 20-day low, and 30-day low, indicating that there is still room for the price of hydrogen peroxide to rise in the long term in China.

In summary: In mid-June, China's hydrogen peroxide market was dominated by negative fundamentals, with supply pressures intensifying and terminal demand remaining weak.

From a technical perspective, it can be seen that at the beginning of June, the hydrogen peroxide market in China was at a low level, with an expected rise. In mid-June, the overall hydrogen peroxide market in China experienced minor fluctuations, with a high probability of an increase, and the expected price range is between 600 CNY/ton and 800 CNY/ton.