Hydrogen peroxide prices declined slightly in mid-August 2025 due to the supply and demand competition. The market showed signs of stagnation and steadiness while favourable production economics pressured the prices downwards. The supply dynamics of Hydrogen Peroxide reflected a phase of relative balance while the demand from downstream sectors remained steady and is expected to remain under pressure as no signs of improvement are expected in the near term.
The Hydrogen Peroxide prices showed a slight downward trend in the second week of August 2025 in the US market. The market showed signs of stagnation and limited growth amid market supply and demand competition. Due to the ongoing US tariffs and other factors, the demand growth from downstream sectors remained limited, and offtake of Hydrogen Peroxide remained steady leading to a downward price correction.
The supply dynamics of Hydrogen Peroxide reflected a phase of relative balance with the producers maintaining steady operating rates. Domestic plants continued to run at stable capacities, ensuring sufficient availability to meet the demand from downstream sectors. Competitive pressures and global oversupply, particularly from Asia discouraged the producers to aggressively expand output, therefore they refrained from expanding output and maintained a “wait and see approach”. Hydrogen Peroxide producers largely adopted a cautious stance, aligning production closely with offtake to avoid inventory build-up. However, a decline in natural gas prices during the week led to favourable production economics as production of Hydrogen peroxide is an energy extensive process. Declining production costs amid steady demand ultimately led to a slight dip in the prices.
The demand from major downstream sectors including paper & pulp and textile sector remained steady and not robust which limited the offtake of Hydrogen Peroxide in the market. Cotton prices held steady over the past month, with major international and domestic benchmarks showing minimal movement which reflected steady operations in the downstream textile market. The U.S tariffs did not have a direct impact on Hydrogen Peroxide market but directly impacted the downstream sectors. American buyers have also paused execution of existing orders from India after the announcement of 50% tariffs, prompting exporters to adopt a “wait and watch” stance. Overall, the demand of bleaching chemicals like Hydrogen Peroxide was also impacted and market players adopted a cautious stance. The offtake from paper and pulp sector also remained cautious amid the ongoing economic headwinds.
According to the ChemAnalyst analysis, the prices of Hydrogen peroxide is expected to remain rangebound with slight downward bias. The demand from downstream sectors is expected to remain steady and firm as no signs of improvement are expected in the near term. Until the downstream offtake improves, and supply remain balanced, the prices are expected to be stable to weak in accordance with the overall market sentiments. The wait and see approach from producers and tepid demand from downstream sectors is anticipated to support the price trend.
