Supply-Demand Challenges Drive the Global Hydrogen Peroxide Prices in October 2023
- 01-Nov-2023 4:53 PM
- Journalist: Xiang Hong
FOB Rotterdam: The global Hydrogen Peroxide market experienced a noteworthy surge in prices during the month of October, signaling a significant shift in market dynamics across the US, Chinese, and European regions. This upward price trend can be attributed to a complex interplay of factors, including increased demand and intricate supply challenges. While the European and US Hydrogen Peroxide markets have managed to maintain stability, supported by subsided inventories, the Chinese Hydrogen Peroxide market stands out with remarkable price surges. Heightened demand and rising energy costs, linked to increased crude oil prices, have further influenced market dynamics.
The European and US markets have experienced stability in their market dynamics. The Hydrogen Peroxide industry in these regions has recently seen a high load as inventories have significantly decreased. This decrease in inventory positions has strongly supported the Hydrogen Peroxide spot market, resulting in relatively stable prices. These regions have not faced the same supply constraints as China, and the market appears to be more balanced regarding supply and demand. However, the continuous rise in the energy cost and moderate demand from the downstream textile and leather, with consistent demand from the pharmaceuticals industries, may further provide positive support in its pricing.
Conversely, Hydrogen Peroxide exhibited a notable price surge in the Chinese market. This can be attributed to the heightened demand from the cleaning and disinfectants industry, which continues to prioritize hygiene and sanitation due to ongoing global health concerns. Moreover, steady demand from the textile and pulp&paper sectors has further bolstered the price trajectory. The rubber industry's reliance on Hydrogen Peroxide for various applications has fueled buying activity, contributing to heightened demand. Notably, the recent escalation in crude oil prices has elevated energy costs, thereby playing a role in shaping the market fundamentals and influencing the dynamics of the Hydrogen Peroxide market. The market in China has also been grappling with limited supply as the availability of the material remains constrained. This shortage in supply is primarily attributed to disruptions in production activity from the manufacturing units. Market participants faced difficulties meeting the downstream industries' demands, adding further strain to the market.
According to chemAnalyst, the Hydrogen Peroxide market may continue to experience an upward price trend in the forthcoming months. Several factors are likely to contribute to this incline. Firstly, the ongoing demand from the cleaning and disinfectants industry is expected to persist as hygiene remains a top priority. This sustained demand will likely keep upward pressure on prices. Secondly, the textile and pulp&paper sectors are unlikely to see significant declines in their need for Hydrogen Peroxide, contributing to a stable base level of demand. Lastly, the challenges in the supply chain, particularly in the Chinese market, may persist due to ongoing disruptions in production activity. This, coupled with increased energy costs driven by crude oil prices, will continue to influence the dynamics of the Hydrogen Peroxide market.