August 25 news
According to SpotCom data: In August, the hydrogen peroxide market showed a weak downward trend, with a price decrease of over 4%. At the beginning of the month, the average market price of hydrogen peroxide in China was 636 CNY/ton. By August 25, the average market price had fallen to 606 CNY/ton, a decline of 4.71%.
Reasons for the decline in hydrogen peroxide prices in China
Supply side: The overall excess capacity in the industry remains unchanged, with major manufacturers such as Shandong Luxi and Jinyimeng maintaining high operating rates. The national industry's operating rate is 72-75%, while in Shandong, it is 78-82%. There is ample supply of goods from the northern regions, which continues to suppress the price floor.
Localized plant maintenance has created a period of tight supply-demand balance, serving as the key driver behind this round of rebound: Anhui Guotai’s 250,000-ton facility halted operations for maintenance on August 18, with the resumption date yet to be determined; Shandong Jinmei Mingshui has been idled for an extended period, resulting in the loss of some commodity supplies and shrinking spot availability in East China, thereby pushing prices upward in southern regions.
New Capacity Release: Sichuan Fuhua’s 200,000-ton capacity unit began commissioning in July, boosting supply in the Southwest region; Jiangxi Jiu’er Salt Industry’s 180,000-ton facility resumed operations in August, supplementing supply in Central China. In the longer term, the expansion and upgrade project of Dongyangguang in Ruyuan, with a planned capacity of 600,000 tons, has completed its filing, meaning upward pressure from additional capacity remains. Prices have fallen to near-cost levels, leading to widening enterprise losses and a weakening willingness to sell at low prices, thus boosting sentiment toward price support.
Demand Side: Negative factors prevail. The paper and textile industries are in the traditional summer off-season, and demand for bleached pulp remains stable. Paper mills primarily adopt a just-in-time procurement approach, with no large-scale, centralized restocking activities. Although new capacity from companies such as Forest Packaging has come online, it has yet to trigger a surge in procurement volume. Downstream sectors like caprolactam and water treatment are operating at moderate levels, with cautious raw material purchasing. Traders tend to engage in quick-turnover transactions, showing little willingness to stockpile goods. While exports have seen some increase, the overall volume remains limited and is insufficient to offset the pressure from China’s supply.
Bullish factors: As the papermaking industry approaches the traditional peak season of "Golden September," some paper companies in China have started to stock up early, leading to a month-on-month increase in procurement. The production schedule for the iron phosphate industry has improved, and with hydrogen peroxide as a raw material, the demand from the new energy sector in China has also seen a month-on-month improvement.
Technical Analysis Forecast for Hydrogen Peroxide Spot Market: From the price trend chart of hydrogen peroxide, key indicators: On July 21, the 10-day moving average of hydrogen peroxide crossed below the 20-day moving average, indicating a downward trend. Since early August, the market for hydrogen peroxide has mainly shown a weak and continuous decline. In mid-August, the market continued to fall. By the end of the month, the difference between the averages narrowed in reverse, the decline slowed down, and prices began to rise.
Auxiliary Indicator: As of the end of August, the price of hydrogen peroxide reached a high on the 10th, a high again on the 20th, and a low on the 30th, indicating that, in the long term, there is still room for hydrogen peroxide prices to decline.
In summary: At the beginning of September, the fundamentals of hydrogen peroxide in China show weak supply and demand, with the market trend continuing to decline. From a technical perspective, it can be seen that at the end of August, the price of hydrogen peroxide was at a high level, and there is room for a decline. At the beginning of September, the market for hydrogen peroxide may continue to weaken, with a high probability of falling, and the expected price range is between 500 CNY/ton and 600 CNY/ton.
