June 24 news
According to Spotcom data: The hydrogen peroxide market weakened in June, with prices continuously falling. At the beginning of the month, the average market price of hydrogen peroxide in China was 676 CNY/ton, and on June 24, the average market price of hydrogen peroxide in China was 626 CNY/ton, a price decrease of 7.39%.
Reasons for the decline in hydrogen peroxide prices
Supply side: Since June, manufacturers have gradually restarted their facilities after maintenance, keeping the industry's operating rate at a high level. This has further increased the volume of goods in the market, adding to the supply-side pressure. At the same time, there are expectations of new facilities commissioning in Sichuan and other regions, which have intensified the market's wait-and-see attitude and bearish sentiment.
On the demand side: June typically marks the traditional off-season for pulp and dyeing industries. Paper mills are purchasing materials according to actual needs, leaving little room for a significant increase in output during the peak season. While demand for environmental water treatment remains steady, it only provides a basic floor support and is insufficient to drive market prices higher. Both major downstream sectors have shown disappointing performance: For caprolactam, the industry is experiencing heavy losses, with operating rates declining and demand for raw materials remaining rigidly constrained. As for propylene oxide, operating rates also remain low, and procurement sentiment is generally subdued, failing to provide strong support to the market.
Technical analysis forecast for hydrogen peroxide spot: From the price trend chart of hydrogen peroxide, key indicators show that on May 10, the 10-day moving average of hydrogen peroxide crossed below the 20-day moving average, indicating a downward trend. Starting in June, the 10-day and 20-day moving averages of hydrogen peroxide became very close, with the difference continuously narrowing, suggesting a deceleration in the decline. In June, the spot market for hydrogen peroxide weakened, with prices continuously testing new lows. An increase in the price of hydrogen peroxide is expected at the beginning of July.
Auxiliary indicators: In late June, the price of hydrogen peroxide was at a low to mid-level over 10 days, a mid to low level over 20 days, and at a low level over 30 days, indicating that in the long term, there is strong upward momentum for hydrogen peroxide prices in China.
To sum up: In July, the fundamentals of hydrogen peroxide in China remained predominantly bearish, with supply pressures intensifying and terminal demand weakening. From a technical perspective, hydrogen peroxide prices hit a low point in June, leaving room for future price increases. At the beginning of July, hydrogen peroxide prices experienced broad fluctuations overall, with a relatively high probability of rising. We expect prices to range between 600 CNY/ton and 700 CNY/ton.
