Hydrogen peroxide market is booming in Europe, Here’s why
- 25-Apr-2022 10:48 AM
- Journalist: Rene Swann
Hydrogen peroxide prices in the European market have been on a rising trend for the entire Q1 of FY22. The upstream anthraquinone prices reached record highs due to high feedstock crude oil costs. The prices increased because of Europe's dependency on Russia for crude oil and natural gas. A few European countries' bans on Russian oil imports abetted the upward price trend of hydrogen peroxide in the European market during the first quarter of 2022. The high price of imported oil and gas led to an energy crisis, which forced many petrochemical refineries to suspend production, leading to lower inventories and higher hydrogen peroxide costs.
The constant offtakes from the downstream paper and pulp industry in Europe contributed to the upward trend of hydrogen peroxide prices in the European market. Hydrogen peroxide plays a vital role in the new developments of wastewater treatment in various European countries, creating a hike in hydrogen peroxide demand across Europe. The sanitary habits have changed noticeably, especially among the developed countries in Europe, where the need for an effective antiseptic cleaning product like hydrogen peroxide increases the demand for the product. The Upstream anthraquinone market in Europe is highly dependent on Chinese imports. Now the European market is suffering from a limited supply from China owing to the restrictions at the Chinese ports during the period between mid-Feb to mid-March, and they couldn't procure enough anthraquinone to have a stable production of hydrogen peroxide.
According to ChemAnalyst, the price of hydrogen peroxide in Europe has been rising throughout FY22 and will probably continue to increase as there is no improvement in anthraquinone supply from China. Hydrogen peroxide prices peaked up to USD 550/MT in April 2022, and the prices of Hydrogen peroxide are likely to increase as number of Covid 19 cases in Europe rises and hydrogen peroxide plays a crucial role in manufacturing hand sanitizers.