SunSirs: Rigid Demand Increases and the Hydrogen Peroxide Market Is Expected in September

Price trend

According to the monitoring data of SunSirs, the hydrogen peroxide first fell and then rose in August. Starting on the 10th, the price gradually increased. In the middle and late ten days, the price continued to fluctuate at a high level. The price fell near the end of the month. Entering September, hydrogen peroxide showed an upward trend again. On September 2, the average market price of hydrogen peroxide was 933 RMB/ton, an increase of 0.72% from the end of August. From August 10th to September 2nd, the hydrogen peroxide market has risen close to 4%.

Analysis review   

In the first eight months of 2020, the price of hydrogen peroxide still fell more and rose less. In February and April, the price fell more than 10%, and the decline in March, May and August was relatively small. Prices rose mainly in January and June, with the largest increase of over 30% in June. After June, the price of hydrogen peroxide continued to fall in July, with a decrease of nearly 9%. In August, due to the excessive price drop in the first week, the price continued to rise in the second half without changing the overall decline. The overall decline was more than 2%.

The propylene oxide commodity index on February 27 was 56.22, which was the same as the previous day. It was 44.44% lower than the highest point of the cycle at 101.18 points (2011-10-26) and 34.82% higher than the lowest point of 41.70 points on January 25, 2016. . (Note: Period refers to 2011-09-01 to now)

CPL's rise has already appeared, and the market of hydrogen peroxide is expected in “Golden September”

Since August, the terminal CPL has been suppressed by the weak upstream pure benzene market, and the price has continued to fall by more than 9%. Entering September, the supply of CPL was in short supply due to the overhaul of equipment from pure benzene manufacturers. As of September 2, the average market price of CPL was 9616 RMB/ton, which was an increase of 1.76% from the end of August.

The commodity price index of hydrogen peroxide and CPL on September 2 was 141.76, a decrease of 1.48 points from previous day, a decrease of 24.57% from the highest point in the cycle of 187.94 points (2019-10-29), and an increase of 57.77% from the lowest point of 89.85 points on January 29, 2019. (Note: Period refers to 2019-01-01 until now)

The CPL market is on the rise, manufacturers are more enthusiastic about purchasing hydrogen peroxide, and the price of hydrogen peroxide is rising. The average price of hydrogen peroxide in the domestic market is 900-1100 RMB/ton, which is about 50 RMB/ton higher than at the end of August.

Paper industry are entering “Gold September and Silver October” and the rise of hydrogen peroxide is expected

In mid-August, the price of corrugated paper was weak. Leading paper mills such as Lee & Man, Jingxing, and Golden Phoenix cut prices for finished paper. This round of price declines affected 7 provinces. In addition to the increase in the volume of paper products arriving at the port, the domestic market has been affected to a certain extent. After the weak decline of corrugated paper, it has stabilized one after another. The traditional consumption peak season of the paper industry has arrived. The market expectation of "Golden September and Silver October" has increased, stimulating the recovery of hydrogen peroxide market, and the future rise can be expected.

Market outlook

The hydrogen peroxide analyst of SunSirs believes that the hydrogen peroxide terminal gold September and silver October is coming, rigid demand increases, and the market outlook for hydrogen peroxide is expected to continue to rise, completely getting rid of the downturn.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.