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The prices of hydrogen peroxide experienced a gradual drop in Asia due to low demand from the downstream industries. A condition of low demand coupled with a low supply of hydrogen peroxide throughout the month resulted in a sluggish momentum in the proportion of demand-supply in the hydrogen peroxide market.

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An analysis by Procurement Resource reported a m-o-m decline of approximately 2.82% in the prices of hydrogen peroxide in India between the period of November and December.

Low Demand Affected the Overall Price of Hydrogen Peroxide Throughout November

Downstream industries, including paper and pulp production units, lowered their ask for hydrogen peroxide amid an off-season for production activities of paper products. Moreover, the lowering of demand acquisition in the downstream industries impacted the market with a negative wave, causing a reduction in the prices of hydrogen peroxide by manufacturers in Asia, especially China and India.

The Hydrogen Peroxide Market Remained Sluggish Throughout December

Sufficiency in the inventory levels ensured stability in the supply of hydrogen peroxide in Asian regions. However, bad weather conditions during December affected transportation in some major Chinese regions, specifically the northern regions, leading to a slight disturbance in the supply chain. On the other hand, a slight increase in the prices of sulfuric acid (feedstock for hydrogen peroxide) during the period retained a positive market sentiment. However, the low demand observed from the downstream industries for hydrogen peroxide maintained a negative momentum in the price in Asia.

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According to Procurement Resource, the prices of hydrogen peroxide declined in December 2023. The decline in costs was mainly affected due to low demand acquisition from the downstream industries. The negative impact is anticipated to remain for a long time in the Asian market, dragging down the prices of hydrogen peroxide in the upcoming months as well.