Price trend

According to data from SunSirs, the hydrogen peroxide market trended downward in August, with a decline of over 4%. The average market price stood at 636 RMB/ton at the beginning of the month and fell to 606 RMB/ton by August 25, representing a drop of 4.71%.

Reasons for the decline in hydrogen peroxide market prices

Supply side: The industry remains characterized by overcapacity. Major producers such as Shandong Luxi and Jinyimeng are maintaining high operating rates; the national industry operating rate stands at 72–75%, while Shandong's is 78–82%. Ample supply from the north continues to keep a floor on prices.

Localized plant maintenance causing a temporary tight supply-demand balance is the primary driver of the current price rebound. Anhui Guotai's 250,000-ton unit was shut down for maintenance on August 18, with the resumption date yet to be determined; meanwhile, the long-term shutdown of Shandong Jinmei Mingshui has reduced the volume of merchant supply. This contraction in spot availability in East China has pushed prices upward in the south.

New capacity was coming online: Sichuan Fuhua's 200,000-ton facility is set to start production in July, boosting supply in the Southwest, while Jiangxi Jiuer Salt Industry's 180,000-ton unit will restart in August, supplementing supplies in Central China. Filing formalities have been completed for the long-term project to expand Ruyuan HEC's capacity to 600,000 tons, indicating persistent pressure from future capacity additions. With prices hovering near the cost line and corporate losses widening, the willingness to sell at low prices has diminished, and there is a growing sentiment toward supporting price levels.

Demand side: Bearish factors include the traditional summer off-season for the papermaking and textile industries. Demand for bleached pulp remains steady but flat, with paper mills primarily purchasing on an as-needed basis rather than engaging in large-scale, concentrated restocking; while new production capacity from companies like Forest Packaging has come online, it has not yet triggered a surge in procurement volume. Operating rates in downstream sectors—such as caprolactam and water treatment—remain lackluster, leading to cautious raw material purchasing; traders are largely prioritizing quick turnover and show little inclination to stockpile inventory. Although exports have increased, the overall volume is limited and insufficient to offset the pressure from domestic supply.

Positive factors: The papermaking industry is approaching the traditional "Golden September" peak season; some paper manufacturers are stocking up early, leading to a month-on-month recovery in procurement. Production schedules in the iron phosphate industry have ramped up, boosting demand for hydrogen peroxide (a raw material), while demand from the new energy sector has also improved month-on-month.

Market Outlook

In summary, as of early September, the domestic hydrogen peroxide market is characterized by weak supply and demand, with prices continuing a downward trend. The market is likely to remain weak, with a high probability of further declines; prices are projected to range between 500 and 600 RMB/ton.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.

From:ChemNet