Hydrogen Peroxide Prices Soar in North-East Asia with Expected Decline in Coming Months
Hydrogen Peroxide Prices Soar in North-East Asia with Expected Decline in Coming Months

Hydrogen Peroxide Prices Soar in North-East Asia with Expected Decline in Coming Months

  • 14-May-2024 2:50 PM
  • Journalist: Jacob Kutchner

The Hydrogen Peroxide market in the North-East Asian region rode a wave of robust demand in April 2024, propelling prices upward. However, the forecast for the next three months paints a contrasting picture, with prices expected to recede across China, South Korea, and Japan.

In April, the Hydrogen Peroxide Spot Ex-Shanghai (China) price stood at approximately USD 620 per MT, reflecting a substantial increase of around USD 40 per MT compared to March 2024. This upward trend was fuelled by heightened industrial activity and rising costs of base materials like oxygen, which strained existing production capacities and prompted companies to expand facilities and enhance operational efficiencies.

South Korea too experienced a noticeable increase in Hydrogen Peroxide prices, with the FOB Busan price hovering around USD 463 per MT in April. This surge was primarily attributed to the rise in upstream natural gas prices and increased freight charges, which significantly impacted production costs. Despite these challenges, the market managed to meet end-user demands through moderate domestic supply and increased reliance on imports.

Japan witnessed an increase in both demand and prices for Hydrogen Peroxide, with the CFR Tokyo price reaching close to USD 497 per MT in April. Rising costs in freight, upstream natural gas, and feedstock oxygen played a significant role in driving up prices. While local production initially met the demand, the continuous increase necessitated greater reliance on imports to satisfy the needs of various sectors, including environmental, healthcare, paper and pulp, textiles, wastewater treatment, and food processing.

Looking ahead, the Hydrogen Peroxide market in the North-East Asian region is predicted to experience downward movements in the coming months. In China, prices are projected to decline by July. South Korea's Hydrogen Peroxide market is also forecasted to experience a price decrease by July, with the price gap between Shanghai and Busan narrowing slightly during this period. Japan's Hydrogen Peroxide prices are anticipated to fall by July, with the price difference between Busan and Tokyo remaining relatively stable.

Demand for Hydrogen Peroxide is expected to decline post-May due to seasonal variations in consumption patterns across major application industries. With supply chains stabilizing and production rates adjusting to meet actual demand levels, prices are likely to drop if the market perceives an equilibrium or oversupply situation. As industries adjust their stocks and usage, the continued softening of demand may further reduce prices.

Overall, the Hydrogen Peroxide market in North-East Asia is navigating through a dynamic landscape, where industrial growth, supply chain dynamics, and production costs interplay to shape market trends. Strategic adjustments and market resilience will be crucial in addressing the challenges and capitalizing on opportunities in the coming months.

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