In August, the price of hydrogen peroxide weakened and fell by more than 4%.
Reasons for the decline in hydrogen peroxide prices
On the supply side: The overall overcapacity situation in the industry remains unchanged. Major plants such as Shandong Luxi and Jin Yimeng maintain high operating rates, with the national industry operating rate at 72-75% and Shandong’s at 78-82%. Ample supply in the north continues to suppress prices.
Local plant maintenance has created a temporary tight balance, which is the core driver of this rebound: Anhui Guotai’s 250,000-ton plant shut down for maintenance on August 18th, with the resumption date undetermined; Shandong Jinmei Mingshui’s long-term shutdown has resulted in some loss of commodity supply, leading to a contraction in spot market supply in East China and driving prices upward in the south.
New capacity releases: Sichuan Fuhua’s 200,000-ton plant started production in July, increasing supply in Southwest China; Jiangxi Jiu’er Salt Industry’s 180,000-ton plant restarted in August, supplementing supply in Central China. The long-term expansion project of Ruyuan Dongyangguang to 600,000 tons has been registered, but long-term incremental pressure remains. Prices have fallen to near the cost line, widening corporate losses, reducing the willingness to sell at low prices, and increasing the sentiment to support prices.
On the demand side: Negative factors include the fact that the paper and textile industries are in the traditional summer off-season, with stable demand for bleaching. Paper mills are mainly purchasing on a just-in-time basis, without large-scale concentrated restocking. Although new production capacity from paper companies like Forest Packaging has been released, it has not yet led to a surge in procurement. Downstream industries such as caprolactam and water treatment are operating at moderate capacity, with cautious raw material procurement. Traders are mostly engaged in quick turnover, with little willingness to stockpile. While exports have increased, the overall volume is limited and insufficient to offset domestic supply pressure.
Positive factors: The paper industry is approaching the traditional peak season of September, with some paper mills stocking up in advance, leading to a month-on-month recovery in procurement. The iron phosphate industry is increasing production, and demand for hydrogen peroxide, a raw material, is improving month-on-month in the new energy sector.
Technical analysis of hydrogen peroxide spot prices: On July 21st, the 10-day moving average crossed below the 20-day moving average, indicating a downward trend. From early August, the hydrogen peroxide market continued its weak downward trend, continuing into mid-August. By the end of the month, the price difference narrowed, the decline slowed, and prices began to rise.
In summary: In early September, the domestic hydrogen peroxide market experienced weak supply and demand, with prices continuing their downward trend. Technically, hydrogen peroxide prices were at a high level at the end of August, suggesting further downside potential. The hydrogen peroxide market is likely to continue weakening in early September, with a higher probability of further declines.
Post time: Aug-26-2026