Bearish Sentiment Weighs on Indian Hydrogen Peroxide Market as Buyers Stay Cautious
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FChemicals_2282da2674.png&w=1920&q=100)
Hydrogen peroxide prices dropped ₹2/kg due to weak demand from textiles & pharma and high domestic production. India's 34 kt monthly demand remains below 39 kt production capacity. Global factors, including crude oil & gas price fluctuations, add uncertainty, keeping the market bearish for February. Further price declines possible.
Key Takeaways
- Price Update – Hydrogen peroxide prices fell by ₹2/kg, now at ₹25/kg Ex-Mumbai and ₹24/kg Ex-Dahej on advance payment. Gujarat traders offer ₹24-25/kg on 60-day credit.
- Market Conditions – High domestic production and weak demand from textiles & pharma have led to price corrections.
- Supply Overview – India's monthly demand is 34 kt, while domestic production capacity is 39 kt/month.
- Market News – WTI crude oil fell 1.15% to $70.54/bbl, while natural gas rose 2.82% to $3.66/MMBtu.
- Expert View – The market remains bearish as buyers prefer spot purchases over contracts, expecting further price corrections in February.
Hydrogen Peroxide Prices Drop ₹2/kg Amid Weak Demand
- Domestic hydrogen peroxide prices declined by ₹2/kg this week, reaching ₹25/kg Ex-Mumbai and ₹24/kg Ex-Dahej on advance payment terms.
- Traders’ offers remained mixed, with lower price indications in the range of ₹24-25/kg Ex-Gujarat on 60-day credit terms.
- The price correction is primarily attributed to weak downstream demand and increased domestic production.
India’s Hydrogen Peroxide Market Faces Bearish Sentiment in February
- Supply levels remain high as domestic manufacturers continue to operate at improved production capacities. However, sluggish demand from key downstream industries is exerting downward pressure on prices.
- Primary consumers of hydrogen peroxide include the pulp & paper, textile, water treatment, semiconductor, and pharmaceutical sectors.
- Demand from the textile and pharmaceutical industries remains weak due to subdued production rates.
- India's monthly hydrogen peroxide demand is estimated at 34 kt, while domestic production capacity stands at 39 kt per month.
- Manufacturer-wise production capacities:
1. Meghmani Finechem: 5 kt/month
2. National Peroxide: 12.5 kt/month
3. India Peroxide: 12.5 kt/month
4. GACL: 1.04 kt/month
5. HOCL: 0.45 kt/month
6. Chemplast Sanmar: 2.83 kt/month
7. DCM Shriram: 4.37 kt/month - The demand outlook remains bearish for February due to subdued consumption trends and weak market sentiment. Buyers are preferring spot purchases over inventory booking, anticipating further price corrections.
Market News: Mixed Price Movements in International Chemical Market
- In the international market, upstream crude oil and natural gas price movements were mixed:
1. WTI crude oil prices fell by 1.15%, settling at $70.54 per barrel.
2. Natural gas prices rose by 2.82%, reaching $3.66/MMBtu. - Formosa Plastics Corporation (FPC) has temporarily shut down its Phenol/Acetone plant in Ningbo, Zhejiang, China. The facility has a Phenol production capacity of 400,000 tons per year and an Acetone production capacity of 250,000 tons per year.
- Fineotex Chemical's Q3 FY25 total income fell 9% to ₹130.91 crore, impacted by weak FMCG demand. 9M FY25 total income saw a marginal 0.5% rise to ₹430.31 crore.
Expert Opinion on Chemical Market Trends
It is anticipated that hydrogen peroxide prices to remain mixed this week amid weak demand and cautious buying sentiment. As buyers remain hesitant to commit to contracts and build inventories, the market is expected to remain bearish through February.
Daily Market Report
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FChemicals_5_990737e759.png&w=3840&q=75)
Hydrogen Peroxide Prices Drop Amid Weak Demand & Rising Production
Domestic hydrogen peroxide prices fell by ₹1/kg due to weak downstream demand and increased production. Key industries like textiles and pharmaceuticals continue to show sluggish demand. With ample supply and cautious buyer sentiment, prices are expected to remain under pressure, with further corrections likely in the near term.
Read Story
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FChemicals_1_07379aaddf.png&w=3840&q=75)
Despite Seasonal Demand, Indian Phenol Prices Dip as Imports Flood the Market
Phenol prices have dropped by ₹2-3/kg due to increased imports, despite strong seasonal demand from plywood manufacturers. Ample supply and liquidation pressure keep the market bearish. Rising feedstock costs may push production expenses higher. Experts predict short-term price softness but suggest monitoring for potential rebounds due to upstream cost pressures.
Read Story
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FMethanol_3_657cac3513.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FEthyl_Acetate_10fdcead8a.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FStyrene_Monomer_afb0bd4331.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FAcetic_Acid_ac088c5678.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FToluene_ca988694ec.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd3dhalnpawfxbg.cloudfront.net%252Fproduction%252Fnexizo%252Fnexizo.ai%252F_next%252Fassets%252Fved.png&w=128&q=75)