In August, the hydrogen peroxide market experienced a weak decline, with a drop of over 4%. At the beginning of the month, the average market price of hydrogen peroxide was 636 yuan/ton. On August 25th, the average market price of hydrogen peroxide was 606 yuan/ton, a decrease of 4.71%.
Reasons for the decline in the hydrogen peroxide market
On the supply side, the overall overcapacity pattern in the industry remains unchanged, with mainstream large factories maintaining high loads. The national industry is operating at 72-75% capacity, while Shandong is operating at 78-82% capacity. The supply of goods from the north is sufficient, which continues to suppress the bottom of prices.
The partial device maintenance caused periodic tight balance, which is the core driving force of this round of rebound.
New production capacity release: 200000 tons will be put into operation in Sichuan in July, increasing supply to the southwest; The 180000 ton plant in Jiangxi will restart in August to replenish the supply of goods from Central China. The long-term expansion of the milk source project to 600000 tons has been registered, but there is still pressure for long-term incremental growth. The price has fallen to near the cost line, the company’s losses have expanded, the willingness to sell at low prices has weakened, and the sentiment of raising prices has increased.
On the demand side: bearish, papermaking and textiles are in the traditional off-season of summer, and bleaching demand remains stable. Paper companies mainly adopt on-demand procurement without large-scale centralized replenishment. Although new production capacity of paper companies such as forest packaging has been released, it has not yet brought about explosive procurement growth. Downstream operations such as caprolactam and water treatment are average, and raw material procurement is cautious. Traders tend to fast in and out, and their willingness to stock up is not strong. Although there has been an increase in exports, the overall volume is limited, making it difficult to hedge against domestic supply pressure.
Lido: The paper industry is approaching the traditional peak season of Jinjiu, and some paper companies are stocking up in advance, resulting in a month on month rebound in procurement. The production schedule of the iron phosphate industry has increased, and the demand for hydrogen peroxide as a raw material has improved month on month in the new energy sector.
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