July 27 News
According to monitoring data: In July, the hydrogen peroxide market showed a mix of increases and decreases, with prices mainly oscillating downward. At the beginning of the month, the average market price of hydrogen peroxide in China was 653 CNY/ton, and on the 27th, the average market price of hydrogen peroxide in China was 650 CNY/ton, a decrease of 0.51%.
July factors affecting the hydrogen peroxide market in China
Supply side: Supply surplus is the primary factor suppressing prices. In July, China's hydrogen peroxide weekly average operating rate approached 70%, with large manufacturers such as Luxi Chemical increasing their production, making the market supply very abundant. Although some facilities, such as those in Jiangxi Jiuer and Chongqing Hongda, were shut down for maintenance in mid-July, a new 300,000-ton facility by Guizhou Kaidisen began commissioning and shipping, offsetting the positive impact of the maintenance.
On the demand side: Key downstream industries are performing poorly, making it difficult for them to absorb the increase in supply. Due to underutilized capacities, caprolactam plants have reduced their consumption of hydrogen peroxide; downstream sectors such as papermaking and propylene oxide also largely maintain rigid demand-based procurement practices, with no significant bulk restocking occurring. This “buying on the rise but not on the fall” mentality further dampens market transactions.
Inventory pressure in the northern region of China continues to rise due to ample supply but average demand; whereas in South China, inventory has actually decreased because downstream caprolactam plants continue to procure externally. This is also a reason for the regional price differentiation.
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, suggesting a deceleration in the upward trend.
Auxiliary indicator: As of the end of July, the price of hydrogen peroxide was at its lowest level on the 10th, its lowest level on the 20th, and at the median level on the 30th, indicating that, in the long term, there is still room for hydrogen peroxide prices to rise.
In summary: At the beginning of August, the fundamentals of hydrogen peroxide in China are experiencing a tug-of-war between bullish and bearish factors, with supply pressure somewhat alleviated, but terminal demand is poor. From a technical perspective, it can be seen that in late July, the price of hydrogen peroxide was at a medium to low level, indicating potential for an increase. At the beginning of August, the overall trend of hydrogen peroxide prices is expected to experience wide fluctuations, with a higher probability of an upward trend, and the price is forecasted to be between 600 CNY/ton and 700 CNY/ton.
