According to data monitored by SunSirs, the hydrogen peroxide market experienced significant fluctuations in the first eight months of 2025, with prices ranging from 680 to 740 RMB/ton, resulting in an overall increase of 0.48%. Starting in September, hydrogen peroxide prices surged for two months, increasing by nearly 33%. Following this sharp increase, the market experienced a significant downturn. As of December 25th, the average market price of hydrogen peroxide had fallen to 776 RMB/ton, a decrease of over 16% compared to the beginning of November. Overall, hydrogen peroxide prices increased by 10.95% in 2025.

The main reasons for the limited upward trend in the hydrogen peroxide market in 2025 are ample supply and weak end-user demand.

Supply side: An estimated 4.85 million tons of new capacity are expected to come online this year, but the pace of commissioning is constrained by market conditions, resulting in low operating rates across the industry. Demand side: The main downstream caprolactam industry is experiencing long-term losses and unstable operating rates; the paper industry is performing generally poorly, leading to weak demand for hydrogen peroxide.

The supply-demand imbalance led to a lackluster market for hydrogen peroxide throughout the year, with weak fluctuations dominating the first eight months. The significant price increase in September and October was mainly driven by a temporary tightening of supply. In November and December, the market remained weak, with prices mostly trending downwards.

How will the hydrogen peroxide market perform in 2026?

In 2026, the core contradictions in the hydrogen peroxide industry are unlikely to change, and there will be insufficient momentum for a significant price increase.

Short-term outlook: The current high price level is expected to be difficult to sustain. With the resumption of production at plants that were shut down in December, and the potential decrease in downstream caprolactam demand after the New Year holiday, a situation of oversupply may reappear in the market, putting downward pressure on prices.

Medium-to-long-term challenge: Overcapacity. In the long term, the industry still has nearly 20 million tons of planned and under-construction capacity, making it difficult to reverse the "over-supply" situation in the short term. Pressure for technological upgrades: Currently, approximately 11.07 million tons of capacity in the industry still utilize the outdated "acid-base fixed-bed" process, accounting for 35%, facing pressure for technological transformation or closure. However, simply eliminating old facilities is insufficient to offset the massive increase in new capacity, making it very difficult for the industry to "streamline" itself.

Baseline Scenario

Supply and demand show moderate growth, with demand in high-end sectors offsetting some of the weakness in traditional industries. Cost pressures ease, and industrial-grade hydrogen peroxide prices fluctuate within a certain range.

Optimistic Scenario

Demand for new energy and semiconductors exceeds expectations, coupled with stricter environmental policies stimulating demand for water treatment. Supply-side capacity optimization accelerates, and increased industry concentration drives an upward shift in average prices, with structural shortages potentially emerging, especially for high-end products.

Pessimistic Scenario

The global economy faces increasing downward pressure, coupled with weak manufacturing demand and excess production capacity. Intensified price competition puts downward pressure on industrial-grade hydrogen peroxide prices, leading to further contraction in industry profits.

According to an analyst at SunSirs, the domestic hydrogen peroxide market in 2026 is expected to be generally better than in 2025. However, due to oversupply and a slowdown in demand growth, the hydrogen peroxide market will likely continue to fluctuate widely, with prices generally ranging from 700 to 1,000 RMB/ton.

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