The Hydrogen peroxide market in USA witnessed a notable surge in the first week of April 2025. The driving force behind this upward trend was supply disruptions and rising energy costs which outweighed the weakened demand. The market observed various factors which ultimately resulted in bullish trend for hydrogen peroxide.

On the supply front, the supply disruptions were caused by a combination of increasing input costs and operational setbacks. As the production of hydrogen peroxide is highly energy extensive, the rise in natural gas prices led to increased production expense for hydrogen peroxide, leading manufacturers to re-evaluate output strategies in the week. Higher production costs prevented full-capacity operations leading to supply constraints and cautious approach from producers.

Additionally, unplanned plant shutdowns placed additional strain on already- tight supply chains, significantly reducing availability of Hydrogen peroxide in the market and adding pressure on buyers to secure inventory in an increasingly constrained environment.

While the supply became more constrained, weak demand fundamentals from key downstream industries that is textile and paper supported the bullish trend.

In the textile sector, recent U.S tariff hikes on imported textiles have had significant effects across global supply chains. Nearly 95% of U.S textile imports originate from countries including China, Vietnam, India, Bangladesh, and Indonesia which are subjected to increased tariffs. This may lead to textile production slowdown in key exporting nations, leading to decreased usage of hydrogen peroxide as bleaching agent. While some textile manufacturing may eventually shift to domestic sources, higher costs and limited infrastructure in the U.S. make this an unlikely short-term remedy.

Similarly, the USA paper and pulp industry has shown little sign of recovery. A combination of macroeconomic headwinds, seasonal demand downturns, and logistical bottlenecks—particularly in truckload availability—have dampened activity. The Federal Reserve’s pause in interest rate cuts, driven by persistent inflation and strong labor market performance, has further clouded economic forecasts. Additionally, concerns about tariffs on forest-based products have led to uncertainty and cautious procurement strategies within the sector, softening the demand for bleaching chemicals like hydrogen peroxide.

According to the analysts at ChemAnalyst, the market sentiments for hydrogen peroxide may weaken in the short term amid declining demand fundamentals in major downstream sectors. Textile sector is facing tariff related downturns which may ultimately impact the demand of Hydrogen peroxide in the market. The supply chain disruptions may be outweighed by reduced demand and procurement by market players leading to notable drop in the prices of Hydrogen peroxide. Overall, the market dynamics may be influenced by changing energy costs and demand dynamics leading to change in the market trend.