Hydrogen Peroxide CAS NO. 7722-84-1 Production July Review and Forecast Analysis
【Price Review】
In July, the hydrogen peroxide market exhibited weak fluctuations, with the trading center of gravity experiencing a slight decline. As of July 29th, prices decreased by 2.56% compared to the previous month. The average price in July 2023 saw a year-on-year decline of 11.39%.
【Market Forecast】
In July, the domestic production of hydrogen peroxide experienced a slight decrease month-on-month, with an estimated output of 1.799 million tons compared to 1.809 million tons in June, reflecting a decline of 0.55%. Year-on-year, July’s production totaled 1.466 million tons, marking an increase of 22.71%. The operating load rate of hydrogen peroxide enterprises nationwide in July was 67.10%, down from 71.10% in June, representing a decrease of 4 percentage points. In July 2023, the operating load stood at 67.16%, reflecting a year-on-year decrease of 0.06 percentage points.
【Demand Side】
1. The operational capacity of caprolactam has significantly decreased, while other downstream sectors have experienced a slight downturn, with all demand directions showing weakened support. This month, the operating load rate of caprolactam facilities stands at 84%.
2. The paper industry has seen a month-over-month decline of 1.37 percentage points in operational activity.
【 July Domestic hydrogen peroxide market review 】
In July, the hydrogen peroxide market experienced a slight weak fluctuation, with the transaction center of gravity moving downward. As of July 29, the average market price for hydrogen peroxide was $132.26 per ton, compared to $136.45 per ton in June (revised), reflecting a month-over-month decline of 2.56%, which is a decrease in the rate of decline by 3.69 percentage points from the previous month. The average price in July 2023 was $149.11 per ton, showing a year-on-year decrease of 11.39%. At the beginning of July, three domestic plants conducted maintenance, leading to mixed changes in operating rates. The introduction of a new caprolactam production capacity in the domestic market has increased support for concentrated product demand. As we progressed into late July, market trading stabilized, with a concentration of production reductions from factories in southern China, leading many to increase selling prices in localized areas. As of July 29, the monthly average price for 50% hydrogen peroxide in Guangdong was $304.91 per ton, down from $313.54 per ton in June, signifying a month-over-month decrease of 2.75%, with the rate of decline narrowing by 3.48 percentage points compared to the previous month.
【Domestic Supply Analysis for This Month】
In August, there are still many news about the increase and reduction of hydrogen peroxide plan, but most of them are integrated devices, and other unplanned increase and reduction of production are insufficient. Some enterprises plan to resume production, and the supply is expected to increase in August, and the supply remains loose.
【 Import Analysis 】
According to data, the import volume of hydrogen peroxide in June 2024 was 960.17 tons, down 33.73% month-on-month and down 51.58% year-on-year.The average import price in June was $943.67 / ton, down 30.26% month-on-month and up 41.54% year-on-year.From January to June 2024, China’s cumulative hydrogen peroxide imports were 8592.42 tons, down 16.47% year-on-year.
【Domestic Demand Analysis for This Month】
The operation of caprolactam has significantly decreased, while other downstream sectors have experienced slight declines, with weak supportive strength across all demand segments.
1. Caprolactam: This month, there have been numerous unscheduled fluctuations in caprolactam production facilities, resulting in a general decrease in industry operational levels. Domestic production enterprises are operating at approximately 70% capacity.
2. Paper manufacturing: In the past month, large-scale enterprises in East and South China have resumed production lines that were previously shut down, primarily focusing on the production of cup paper and food packaging, with minimal impact on the supply of general-purpose card stock. Overall, there has been a slight increase in domestic ordinary white cardboard production this month.
3. Cotton yarn: As the traditional off-season of high temperatures and humidity deepens, cotton yarn transactions are gradually declining, compounded by the synchronous decline in both cotton and cotton yarn prices. This has led to decreased purchasing enthusiasm from downstream textile factories, which may result in a slight accumulation of cotton yarn inventory, and a reduction in operational load for cotton spinning enterprises.
4. Epoxy soybean oil: This month, some epoxy soybean oil enterprises in Southern China are operating at reduced capacity.
【 Export Analysis 】
According to the data, the export volume of hydrogen peroxide in June 2024 was 1591.62 tons, up 3.38% compared with the same period last year.
From January to June 2024, the cumulative export volume of hydrogen peroxide in China is 13,947.14 tons.
【 Related Product Analysis 】
In July, the caprolactam market experienced an initial decline followed by a slight increase. As of the close on the 29th of this month, the market price for caprolactam in East China was down by 77.55 USD/ton compared to the average price from the previous month, reflecting a decrease of 4.23%. Throughout July, the price of benzene, an essential raw material, continued to decline, with Sinopec’s benzene price dropping from 1315.71 USD/ton at the beginning of the month to XXXX USD/ton, marking an 11% decrease, which has weakened the cost support for caprolactam. Although there were fluctuations in production among manufacturers and planned maintenance activities during the month, the overall market supply remained sufficient. Consequently, the diminished cost support for caprolactam, combined with lackluster downstream market demand and ample on-site supply, has led to a clear downward price trend. The decline in caprolactam production has slightly weakened its support for hydrogen peroxide demand.
In July, the market price for white card paper showed an overall increase. As of July 29th, the market average price for 250-400g flat white card paper reached 619.56 USD/ton, an increase of 2.02% compared to last month and a 5.80% rise year-on-year.
The domestic propylene oxide market in July exhibited a trend of initial suppression followed by recovery, primarily due to the dual support from both supply and demand. At the beginning of January, buyer enthusiasm was low, and spot supply was ample, leading to a downward shift in negotiation focus. Starting from mid-February, the industry faced losses across various processes, with strong support from cost factors. Influenced by planned maintenance and temporary shutdowns, spot supply tightened, resulting in improved pricing in the market after easing supplier inventory pressures.
The price of iron phosphate in July experienced a slight decline. As of July 29th, the market price for iron phosphate ranged from 1392.29 to 1517.60 USD/ton, representing a 14.09% decrease compared to the same month last year. In terms of raw materials, prices for phosphate and industrial monoammonium phosphate showed weak performance this month, with some loosening of cost support.
In July, the epoxy soybean oil in East China recorded an epoxide value of 6.0, reflecting a decrease of 1.13% compared to the previous month’s average. The decline in epoxy soybean oil production has slightly weakened its support for hydrogen peroxide demand.
【 Future Outlook of Hydrogen Peroxide Market 】
In August, the hydrogen peroxide market experienced a simultaneous decline in both supply and demand. Compared to June, the overall conditions improved, but the transaction focus shifted slightly downward. On the supply side, certain enterprises planned unscheduled maintenance throughout the month, leading to a reduction in operational levels in the latter half. Although new production capacities were gradually being introduced, overall output saw a slight decrease. On the demand side, caprolactam operations were at high levels, while other downstream sectors continued to weaken as the off-season progressed.
