July 16th, according to news,
According to Spotcom data: In July, the hydrogen peroxide market recovered, with prices fluctuating and increasing by over 4%. At the beginning of the month, the average market price of hydrogen peroxide in China was 653 CNY/ton. By July 16, the average market price of hydrogen peroxide in China had risen to 680 CNY/ton, an increase of 4.08%.
The reasons behind the fluctuating and rising trend in hydrogen peroxide prices
Supply side: Some water companies in the northern region have increased their load, and companies such as Luxi Chemical have increased their product volume, ensuring ample market supply. The average weekly operating rate for hydrogen peroxide in China is around 68%. Supply pressure still exists, which to some extent limits the price increase of hydrogen peroxide.
Demand side: The consumption by caprolactam plants, one of the major downstream users, has declined, while other downstream sectors (such as paper mills and propylene oxide plants) are maintaining only rigid demand procurement, providing limited support to prices.
Inventory: While inventories in the northern regions of China are still increasing, inventories in South China have decreased due to continuous external purchases by downstream caprolactam plants. This has led to a divergence between regions, providing some support to the hydrogen peroxide market.
Technical analysis forecast for hydrogen peroxide spot market: From the price trend chart of hydrogen peroxide, key indicators show that on June 29, the 10-day moving average of hydrogen peroxide crossed above the 20-day moving average, indicating a rising trend. In mid-July, the 10-day and 20-day moving averages of hydrogen peroxide gradually approached each other, with the difference between them narrowing positively, indicating a slowdown in the upward trend.
Auxiliary Indicator: In early July, the price of hydrogen peroxide remained at a mid-to-high level on the 10th, reached a high on the 20th, and stayed at a high on the 30th, indicating that, in the long term, there is still room for hydrogen peroxide prices to decline.
To sum up: In late July, China's hydrogen peroxide market saw a tug-of-war between bullish and bearish factors. Supply pressure remained persistent, while terminal demand remained weak. From a technical perspective, the hydrogen peroxide market was at a mid-to-high level in early July, leaving room for further declines. In late July, the hydrogen peroxide market as a whole experienced wide-ranging fluctuations, with a higher probability of falling prices. We expect prices to range between 600 CNY/ton and 700 CNY/ton.
