For the Quarter Ending June 2021
North American market witnessed a feeble offtake for Hydrogen Peroxide during this quarter, due infirm demand from downstream sector. Textile sector is the key driving factor for Hydrogen Peroxide demand, which ran at a low pace in USA during the month of April and May. Later, the sector improved effectively but ample stock availability restricted any buoyancy in prices in USA. Therefore, a sharp decline in prices was observed in USA which eventually reached USD 775/MT by the end of June 2021. In addition, declining feedstock Hydrogen prices in this sector also played an important role in the sharp fall in prices.
Hydrogen Peroxide demand in Asia remained steady during this quarter, backed by sturdy demand from downstream disinfectant sector. In China, prices climbed up marginally month over month backed by constant demand from domestic market, while the exports remained limited due to soaring freight cost across major trade routes. Meanwhile in India, prices remained stagnant throughout the quarter, some marginal increment in prices was observed in the domestic market. While being an active ingredient in oxygen equipment, demand for Hydrogen peroxide remained stable to firm and stock availability remained ample to satisfy the overall need. In addition, demand from major textile sector remained bearish under pandemic restrictions in the country. Thus, prices of Hydrogen Peroxide settled at USD 434/MT in India during June 2021.
Constant demand from downstream disinfectant sector, amid tight supply, led to an increment in prices of Hydrogen Peroxide in Europe. Taking ripples from the previous quarter, halted production activities and significant rise in feedstock prices, forced manufactures to increase their product prices to sustain their margins. Arkema, increased its Hydrogen Peroxide prices during April by USD 58.88/MT for Europe. In addition, global inflation and fuming freight cost also played an important role in this price hike.
For the Quarter Ending March 2021
The American Hydrogen peroxide market faced abrupt surge in its prices due to lack of proper availability of feedstock chemicals and monthly rise in natural gas value. The demand for hydrogen peroxide from the downstream textile and healthcare industry remained firm during this quarter. The demand for sanitization purposes also remained high. Although the production activity remained halted due to rare climate calamity occurred across Texas, firm demand against feeble supply forced the prices to seek upward trend. Prices of Hydrogen Peroxide (50%) rose from USD 840 per MT to USD 885 per MT from January to March 2021.
The Asian market witnessed high peroxide demand from the healthcare sector amidst and reduced availability of raw materials. Chinese lunar year reduced the inventory levels of key manufacturers till February end and led the prices to rise effectively in the export markets. Similar scenario was observed in the Indian market where prices were majorly supported by surge in natural gas values, while the demand from the healthcare sector remained strong during this period, supporting its average prices by 13.06% (CFR 50% H2O2) from January to March end. Meanwhile, market sentiments rose with the announcement that DSM Shriram will be adding Hydrogen Peroxide capacity of 52.5 KTPA by 2023 in India, which will improve the supply across the country.
Demand for Hydrogen Peroxide from the healthcare sector improved significantly during January and February 2021 across Europe. Although the supply remained moderate to low amidst limited operations in the US and Chinese markets since the second half of the quarter, thereby supporting its prices throughout the quarter. High prices were backed by disturbed transportation due to weather conditions and surging freight prices.
For the Quarter Ending December 2020
The Asian Hydrogen peroxide supplies remained affected in Q4 2020 due to temporary shutdown of some of the manufacturing units in the north west Asian countries. The resumption of industrial activities and resumed international trade prompted steep rise in the consumption of Hydrogen Peroxide which ultimately affected its prices. Demand remained high from the downstream industries like healthcare and textiles for disinfectant purposes. Furthermore, spike in the rates of feedstock and energy values resulted in surge in the regional prices. Since the end of Q3, Hydrogen Peroxide had been witnessing an uptrend with rates settling around USD 340 per MT CFR India.
The European Hydrogen Peroxide market remained somewhat tight during the fourth quarter with significant reduction in the volumes of Hydrogen Peroxide traded in the region. Buying activity remained bullish from the downstream disinfectant sector amid surging COVID-19 cases. The disturbance in Imports due to tight container availability and exponential surge in freight rates kept the prices unreasonably high. Some spot buyers are expected to fill in their inventory in Q1 2021 from the Asian imports to meet the regional demand.
Hydrogen Peroxide supplies in the North American region improved as major plants in the gulf coast restarted production after temporary closures observed in Q3. Due to increase in the price of Natural gas observed towards the end of the quarter, some producers revised their offers rates later in the quarter. Also, downstream plant operating rates gradually improved under the hope of recovery from the pandemic-induced slowdown in the textile and pulp and paper industries.