The hydrogen peroxide market weakened in June, with prices continuously falling. At the beginning of the month, the average market price of hydrogen peroxide was 676 yuan/ton, and on June 24th, the average market price of hydrogen peroxide was 626 yuan/ton, a decrease of 7.39%.
| Gamma-PGA (gamma polyglutamic acid) |
Reasons for the decline in the hydrogen peroxide market
Supply side: Since June, manufacturers have restarted their equipment after maintenance, and the industry’s operating rate has remained high. Further increasing the market commodity volume has led to increased pressure on the supply side. At the same time, new facilities are expected to be put into operation in Sichuan and other places, which has intensified the market’s wait-and-see and bearish sentiment,
On the demand side: June belongs to the traditional off-season for pulp and printing and dyeing, and paper mills purchase according to demand, without the space for high volume during the peak season; The stable release of demand for environmental water treatment only provides a basic support, and cannot drive the market to strengthen. The downstream performance of the two main players is not ideal. Caprolactam: the industry is experiencing heavy losses, with a low operating rate, and only maintaining essential procurement of raw materials. Epoxy propane: Production is also at a low level, with average purchasing sentiment, unable to provide strong support for the market.
Technical Prediction of Business Society’s Hydrogen Peroxide Spot Analysis: From the price trend chart of Business Society’s hydrogen peroxide, it can be seen that the key indicator is that on May 10th, the 10 day moving average of hydrogen peroxide crossed the 20 day moving average, and hydrogen peroxide showed a downward trend. Starting from June, the 10 day and 20 day moving averages of hydrogen peroxide have been infinitely close, with the difference continuously narrowing, indicating a slowdown in the decline. The spot market for hydrogen peroxide weakened in June, with prices continuing to bottom out. The price of hydrogen peroxide is expected to rise in early July.
Auxiliary indicators: In late June, the price of hydrogen peroxide was at a mid low level on the 10th, mid low level on the 20th, and low level on the 30th, indicating that in the long run, the hydrogen peroxide market has strong upward momentum.
In summary, in July, the domestic hydrogen peroxide fundamentals remained dominated by negative factors, with supply pressure doubling and terminal demand weakening. From a technical perspective, it can be seen that the hydrogen peroxide market was at a low level in June, and there is room for further growth in the future. At the beginning of July, the overall market for hydrogen peroxide fluctuated widely, with a high probability of increase, and the expected price is between 600 yuan/ton and 700 yuan/ton.
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